Securitize stock continued rising today, September 23, helped by numerous catalysts, including the ongoing crypto market rally, bullish analysts’ estimates, and a recent change by the Securities and Exchange Commission (SEC). SECZ jumped to $14.87, up by 180% from the current level.
Analysts are turning bullish on Securitize stock
SECZ stock has continued soaring this week as analyst boosted their bullish outlook. Cantor Fitzgerald’s Gareth Gacetta initiated his coverage with an overweight rating and a target of $21. That price suggests a 47% surge from the current level.
Chris Brendler, an analyst from Rosenblatt, maintained a but rating and boosted his target from $11 to $13. Mark Palmer, a StonX analyst, has a target of $12, while Needham’s John Todaro initiated with a buy rating and a target of $11.
In his statement to Gacetta, the Cantor Fitzgerald analyst noted that the company was set to benefit from the ongoing real-world asset (RWA) tokenization industry. It is worth noting that Securitize has a major partnership with Cantor to enable onchain IPOs.
In a recent statement, the Securities and Exchange Commission (SEC) provided an innovation exemption to facilitate trading of tokenized stocks.
This is important because Securitize is one of the biggest players in the RWA industry, thanks to its partnerships with companies like Hamilton Lane, BNY, Morgan Stanley, BlackRock, VanEck, and Apollo. All these companies have launched tokenized assets on its platform.
According to DeFi Llama, the company has over $4.31 billion in total value locked (TVL). The biggest assets in the platform are BlackRock’s BUIDL, Blockchain Capital’s BCAP, Mantle Index Four Fund, and BlackRock USD Institutional (BUIDL-1).
Top analysts believe that tokenization will continue growing, with Standard Chartered expecting it to hit $30 trillion by 2034. Citi and McKinsey expect it to hit $5.5 trillion and $2 trillion by 2030.
Securitize faces some major headwinds
Securitize, despite having a major market share in the industry, faces some major challenges. One of the most important ones is the rising competition from companies like Robinhood and Coinbase, which have launched their tokenized assets on their platforms.
Further, its revenue growth remained under pressure. Its results showed that its revenue dropped by 5% to $14.4 million, with its net loss rising to $21.7 million. Analysts now expect that its third quarter revenue will be $17.6 million. For the year, revenue is expected to jump to $72.25 million. The company has a longer path to hit profitability.
There are also concerns about its valuation. It has a market capitalization of over $2.43 billion, which is about 55% of its market capitalization.
SECZ stock price technical analysis
The daily chart shows that the SECZ stock remained inside a narrow range for months. It remained between the support and resistance levels of $10.3 and $13.8 for months. It then made a bearish breakdown and hit a low of $5.14 in August.
The stock has now rebounded and crossed the important resistance level of $13.82 after Cantor Fitzgerald’s bullish outlook. As a result, it has jumped above the Major S/R pivot point of the Murrey Math Lines tool.
Therefore, the stock will likely continue rising, potentially to the Ultimate Resistance of $18.75. On the other hand, a drop below the support of $12.5 will invalidate the bullish outlook.