Analysts at investment bank Benchmark initiated coverage of Cantor Equity Partners II on Tuesday, assigning a “Buy” rating to the firm that’s expected to merge later this year with Miami-based tokenization specialist Securitize.
The analysts described Securitize as “compelling pure-play investment on tokenization” that’s building a foundation for tomorrow’s capital markets through its end-to-end platform for digital representations of real-world assets like stocks and bonds.
Benchmark analysts penciled in a $16 price target for Securitize, a projection that hinges on the firm’s ability to generate $178 million in sales by the end of next year. That involves widening its competitive moat through blue-chip partnerships, the analysts added.
Benchmark analyst Mark Palmer has confidence in Securitize’s ability to hit that mark because there’s “a great deal of visibility with regard to the company's future revenue streams,” including origination fees from companies tokenizing assets and recurring revenue from servicing costs.
“I think there’s a massive disruptive potential as it pertains to traditional finance and the ways in which capital markets have functioned up to this point,” he told Decrypt. “The concept here really is better and faster across the board, and I think it’s just a matter of time before the market begins to recognize the benefits both in terms of efficiency and settlement times.”
“Securitize is really focused on providing the process behind tokenization, from origination through servicing, in a way that’s applicable to a breadth of industry vertices,” he said. “That’s one of the things that distinguishes it.”
