Webull rated new Buy at Rosenblatt on crypto trading, international upside

Analyst Chris Brendler from Rosenblatt has initiated coverage of Webull with a Buy rating, citing the company's international growth ambitions and the improved regulatory environment for cryptocurrencies in the U.S.

Webull has resumed cryptocurrency trading for U.S. clients after a two-year hiatus due to regulatory issues, with crypto trading historically contributing up to 20% of the company’s revenue.

Brendler highlighted Webull's success in acquiring licenses in 14 international markets, which he believes offer significant growth potential compared to the more competitive U.S. market.

The Buy rating from Rosenblatt contrasts with mixed assessments from other analysts, as Webull's shares have recently seen a decline of 4.6% in trading.

Analyst Recommendation: Buy Rating for Webull

Chris Brendler from Rosenblatt has launched coverage of digital retail trading platform Webull (NASDAQ:BULL) with a Buy recommendation. He attributes this positive outlook to the company's international growth efforts and the more favorable regulatory climate in the U.S. for cryptocurrencies.

Recently, Webull announced that it has reestablished cryptocurrency trading for its U.S. clientele, marking a return to the market two years after suspending the service during its initial public offering due to increased regulatory scrutiny under the Biden administration.

Brendler highlighted that crypto trading accounted for as much as 20% of Webull's revenue during its previous peak cycle. Although he anticipates that this level will not be achieved in the near future, he emphasized that cryptocurrency remains an important factor contributing to the company's projections, which exceed consensus estimates.

Additionally, Brendler noted Webull's advancement in international markets, where it has already obtained licenses in 14 key regions, including Hong Kong, Singapore, and Japan. He remarked that these markets are less competitive, particularly in the active trader segment, and are at an earlier stage of retail participation compared to the U.S.

Despite Webull's strong growth within the domestic market, which has often overshadowed its international progress, Brendler believes that overseas markets represent the most substantial growth potential for Webull in the medium term.

The Buy rating from Rosenblatt stands in contrast to the Sell rating from the Seeking Alpha Quant system, the Hold rating from the average Seeking Alpha analyst, and the Strong Buy rating from the average Wall Street analyst.

In related market activity, shares of BULL experienced a decline of 4.6% during morning trading on Thursday.