DeFi Technologies Inc. (DEFT:NASDAQ; DEFI:CBOE; R9B:FSE) received approval to list its common shares on the NASDAQ starting today, under the symbol DEFT, reported Benchmark Analyst Mark Palmer in a May 12 research note. Benchmark increased its target price on the fintech firm on expected growth in 2025.
"We believe DeFi's uplisting to the NASDAQ is likely to result in significantly increased liquidity for the stock, broader institutional ownership and sell-side coverage of its shares and a lower overall cost of capital for the company," Palmer wrote.
DeFi, offering exposure to a differentiated portfolio of cryptocurrencies, no longer will trade on the OTC. It will, however, continue on the CBOE in Canada (symbol DEFI), where it has traded since September 2016, and on the Frankfurt Stock Exchange (symbol R9B).
Target Price Raised
Benchmark raised its target price on the digital assets firm to CA$8 per share from CA$5 based on 15x its forecasted full-year 2025 earnings per share (EPS) of CA$0.53, noted Palmer.
"Our bullish stance toward DeFi's shares is rooted in our confidence that it will be able to execute on its aggressive growth plans during the balance of the year and beyond," wrote the analyst.
Those include adding at least 40 new crypto-focused exchange-traded products (ETPs) by year-end, taking the total count to more than 100. Plans also include expansion in the U.K., Africa, Asia, and the Middle East, toward which the company has been working.
DeFi announced in its last monthly update that it increased its assets under management (AUM) in April to CA$988 (CA$988M), reflecting an 11.7% month-over-month increase. This is attributed to rising crypto prices and CA$10.8M of net inflows into DeFi's ETPs. In other growth news, the DeFi Alpha trading desk closed a CA$30.5M arbitrage trade on May 5.
Stock Undervalued, 44% Uplift
DeFi was trading, at the time of Palmer's report, at CA$5.55 per share, the analyst noted. While this level is consistent with the fintech's growth prospects, it is at a steep discount to other crypto-related stocks, including Coinbase Global Inc. (COIN:NASDAQ), Robinhood Markets Inc. (HOOD:NASDAQ) and Galaxy Digital Holdings Ltd. (GXLY:TSX).
From this share price, the return to target is 44%. DeFi is a Buy.
Changes to Estimates
Palmer reported that Benchmark tweaked its estimates for DeFi to account for its progress as well as the recent uptick in crypto prices. For Q1/25, estimated revenue was reduced to CA$27M from CA$52.7M and estimate earnings per share was lowered to CA$0.06 from CA$0.09.
Q2/25 EPS was raised to CA$0.16 from CA$0.10 to reflect DeFi Alpha's May 5 arbitrage trade.
More Stock Details
Palmer reported that on May 12, DeFi had 298 million shares outstanding, a market cap of CA$1.2 billion and a 52-week range of CA$0.75–5.56 per share.
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Disclosures for Benchmark Equity Research, DeFi Technologies Inc., May 12, 2025
alyst Certification The Benchmark Company, LLC (“Benchmark”) analyst(s) whose name(s) appears on the front page of this research report certifies that the recommendations and opinions expressed herein accurately reflect the research analyst's personal views about any and all of the subject securities or issues discussed herein. Furthermore, no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the research analyst(s) in this research report.
Equity Research Ratings System Firm-Wide Stock Ratings Distribution As of March 31, 2025 All Covered Companies Investment Banking Clients Buy 266 73.7% 57 15.8% Hold 73 20.2% 5 1.4% Speculative Buy 20 5.5% 11 3.0% Sell 2 0.6% 0 0.0% Company Ratings Buy: Stock is expected to outperform the analyst’s defined Sector/Industry Index* over the following 6 to 12 months. Speculative Buy: The stock has a market value below $100M and/or a higher financial risk profile. It is expected to outperform the analyst’s defined sector/industry index over the following 6 to 12 months. Hold: Stock is expected to perform in-line with the analyst’s defined Sector/Industry Index* over the following 6 to 12 months. Sell: Stock is expected to underperform the analyst’s defined Sector/Industry Index* over the following 6 to 12 months. Industry Ratings Overweight: Analyst’s defined Sector/Industry Index* is expected to outperform the S&P 500 over the following 6 to 12 months. Market Weight: Analyst’s defined Sector/Industry Index* is expected to perform in-line with the S&P 500 over the following 6 to 12 months. Underweight: Analyst’s defined Sector/Industry Index* is expected to underperform the S&P 500 over the following 6 to 12 months. Benchmark Disclosures as of May 12, 2025 Company Disclosure DeFi Technologies Inc Research Disclosure Legend 1. In the past 12 months, Benchmark and its affiliates have received compensation for investment banking services from the subject company. 2. In the past 12 months, Benchmark and its affiliates have managed or comanaged a public offering of securities for the subject company. 3. Benchmark and its affiliates expect to receive or intend to seek compensation for investment banking services from the subject company in the next three months. 4. The research analyst, a member of the research analyst’s household, any associate of the research analyst, or any individual directly involved in the preparation of this report has a long position in the shares or derivatives of the subject company. 5. The research analyst, a member of the research analyst’s household, any associate of the research analyst, or any individual directly involved in preparation of this report has a short position in the shares or derivatives of this subject company. 6. A member of the research analyst’s household serves as an officer, director or advisory board member of the subject company. 7. As of the month end immediately preceding the date of publication of this report, or the prior month end if publication is within 10 days following a month end, Benchmark and its affiliates, in the aggregate, beneficially owned 1% or more of any class of equity securities of the subject company. 8. A partner, director, officer, employee or agent of Benchmark, or a member of his/her household, is an officer, director or advisor, board member of the subject company and/or one of its subsidiaries. 9. Benchmark makes a market in the securities of the subject company. 10. In the past 12 months, Benchmark, its partners, affiliates, officers or directors, or any analyst involved in the preparation of this report, has provided non-investment banking securities-related services to the subject company for remuneration. 11. In the past 12 months, Benchmark, its partners, affiliates, officers or directors, or any analyst involved in the preparation of this report, has provided non-securities related services to the subject company for remuneration. Investment Risk Risks to our investment thesis include crypto market volatility, regulatory risk, changing investor sentiment resulting in reduced ETP flows, and liquidity risk. Valuation Methodology Our C$8.00 price target for DEFI is based on 15x the company's FY25E diluted earnings per share of C$0.53. We believe the multiple we have used reflects DEFI's ample growth prospects. Price Charts Benchmark’s disclosure price charts are updated within the first fifteen days of each new calendar quarter per FINRA regulations. Price charts for companies initiated upon in the current quarter, and rating and target price changes occurring in the current quarter, will not be displayed until the following quarter. Additional information on recommended securities is available on request.
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