Voyager Digital stock: HC Wainwright Reiterates Buy Rating with Price Target of $16

on May 17, 2022
  • HC Wainwright has reaffirmed a bullish forecast for Voyager Digital Ltd.
  • Analysts at the firm point to strong revenue streams and global expansion.
  • The firm gives the Voyager stock a price target of $16.00.

HC Wainwright has reiterated its buy rating for Voyager Digital Ltd (VOYG: TSE)(VYGVF: OTCQX), citing the company’s business prospects as a strong positive despite the flounder that continues to engulf the crypto market.

The firm has a price target of $16.00 on the stock and believes the decline in the stock’s price does not diminish the fact that Voyager Digital is “one of the largest US crypto brands.”

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According to the analysts, it’s possible the pressure within the crypto market after the algorithmic stablecoin UST broke its dollar peg and LUNA’s collapse may impact the market.

However, what they are looking at is the inherent value of crypto  and its “root of trust in a digital environment.” In this case, Voyager is one of the biggest consumer-facing brands in the sector, with products and services that are key to its future growth.

Voyager Digital’s business model is not at ‘full power’ yet

Apart from its crypto debit cards and key merchant tie-ins, the company has an aggressive expansion program beyond US borders.

HC Wainright projects that Voyager’s revenue streams will be bolstered via its lending and staking platforms. Also crucial are the investments and partnerships, including the deal with Blockdaemon, DCG and Alameda.

 “These initiatives have yet to reveal the full power of Voyager’s business model,” said HC Wainwright’s Kevin Dede in a note on Tuesday.

Voyager Digital’s revenue of $102.7 million for the quarter ending March 31 fell within the projected $100-105M. In the market, the company’s stock was trading at $2.37, up 4.4% in Tuesday trading (1:50 pm ET). The stock has a 52-week low of $2.07 and a 52-week high of $21.74.

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