Bitcoin Depot (BTM – Research Report), the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Mike Colonnese from H.C. Wainwright reiterated a Buy rating on the stock and has a $4.00 price target.
Mike Colonnese has given his Buy rating due to a combination of factors that highlight Bitcoin Depot’s promising outlook. The company has recently shown a return to growth, particularly with its guidance for the first quarter of 2025, which exceeds previous estimates. This positive guidance marks the first time in a year that management has provided formal financial forecasts, indicating improved visibility into their operations.
Additionally, Bitcoin Depot’s strategic relocation of underperforming kiosks in 2024 has set the stage for enhanced profitability and revenue growth in 2025. Despite a decline in revenues and adjusted EBITDA in 2024, the company is expected to see a 5% increase in revenue and a 24% rise in adjusted EBITDA in 2025. Furthermore, the potential initiation of a dividend, supported by strong operating cash flows, adds to the stock’s attractiveness. These factors, combined with the stock’s recent underperformance, support the reiterated Buy rating.
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