Cantor Fitzgerald updated its valuation of Gemini Space Station (NASDAQ:GEMI), trimming the price target to $14.00 from $26.00 while keeping an Overweight recommendation on the shares. The new target implies a potential upside of approximately 65% from GEMI's current trading level of $8.46.
The reduction in the price target amounts to a 46% cut from Cantor Fitzgerald's prior valuation. The firm attributed the revision principally to lowered revenue estimates for the company and a narrower target multiple - moving that multiple down from 7x to 6x.
Despite the downward adjustment, Cantor Fitzgerald emphasized continued conviction in the company's prospects. Analyst Brett Knoblauch said, "We still believe in GEMI’s ability to become a larger and more diversified crypto exchange and financial services platform. A downtick in the crypto market does not alter that view for us." The firm therefore maintained its Overweight rating, signaling it expects GEMI to outperform the market on a relative basis over the coming months.
The stock has faced a steep slide over the last year, with shares off 71.5% year-over-year and a recent weekly decline of 9.43%. Those share-price moves are reflected in the fresh valuation assumptions from Cantor Fitzgerald.
Other brokerages have also revised forecasts for Gemini Space Station. Mizuho reduced its price target to $26, citing a pullback in crypto trading activity during the fourth quarter. Rosenblatt likewise lowered its target to $26, noting that Gemini's first quarterly report as a public company showed strong revenue growth but also higher-than-expected expenses. Evercore ISI took a more conservative view, cutting its price target to $15 and pointing to softening digital asset prices and shifting trading dynamics as drivers of its decision.
On the regulatory and corporate front, Gemini Space Station received a Designated Contract Market license from the Commodity Futures Trading Commission, which clears the way for its affiliate, Gemini Titan, LLC, to offer prediction markets in the United States. That license concludes a five-year permitting process. Separately, Cubist named Rohan Chauhan as president to lead its institutional go-to-market efforts, leveraging his prior experience at Gemini and other financial institutions.
Overall, the mix of valuation cuts, moderating revenue assumptions, regulatory approvals and senior hires presents a complex picture. Cantor Fitzgerald's move to compress the multiple and pare back the target reflects nearer-term caution, while the maintained Overweight rating and the firm's stated confidence in GEMI's potential indicate continued support for the company's longer-term strategy.