Webull (BULL) Stock: Compass Point Analyst Projects 64% Rally on Crypto Expansion
Key Takeaways
- Ed Engel from Compass Point launched coverage of Webull (BULL) with a Buy recommendation and $9 price target, representing approximately 64% potential upside.
- The analyst highlighted prediction markets and cryptocurrency trading as major catalysts for growth through 2028.
- Despite trading at approximately 20x earnings—comparable to Robinhood and Interactive Brokers—Webull demonstrates superior growth metrics.
- Fourth quarter revenue surged to $165.2M compared to $110.3M in the prior year period, reflecting robust expansion fueled by increased trading volumes.
- Five analysts maintain an average price target of $13.00, though sentiment remains divided with recent rating adjustments.
Webull has attracted fresh attention from the financial analyst community. Ed Engel at Compass Point launched coverage of the online brokerage with a Buy recommendation alongside a $9 price objective, indicating potential upside of approximately 64% from current trading levels.
Webull Corporation Class A Ordinary Shares, BULL
Engel characterized Webull as “a new name to watch” in the digital brokerage landscape—a company that remains in the early stages of its expansion trajectory.
Currently trading near $5.48, the stock has experienced significant decline from its 52-week peak of $79.56. This substantial range highlights the considerable volatility shareholders have endured.
Webull’s trading platform enables individual investors to access stocks, ETFs, options, and cryptocurrencies through both mobile applications and desktop interfaces. Despite operating in a highly competitive market, the company has successfully built a loyal user base among active retail traders.
Engel’s optimistic outlook focuses heavily on two emerging business segments: prediction markets and cryptocurrency trading operations. Both initiatives launched in 2025 and are projected to generate above-market growth rates extending through 2028.
The analyst anticipates these divisions will position Webull for faster expansion compared to industry rivals such as Robinhood (HOOD) and Interactive Brokers (IBKR) during the upcoming years.
Earnings Multiple and Revenue Performance
From a valuation perspective, Webull currently commands an earnings multiple of approximately 20x—essentially aligned with its more established competitors. Engel’s thesis is straightforward: superior growth rates should eventually warrant a valuation premium rather than a discount.
The revenue trajectory supports an encouraging narrative. During its latest reporting period, Webull generated $165.2 million in total revenue, representing a significant increase from $110.3 million during the comparable prior-year quarter. This reflects an impressive year-over-year expansion of nearly 50%.
The revenue acceleration resulted from elevated trading activity and enhanced user participation throughout the platform.
Engel believes the shares could experience multiple expansion as institutional capital allocators begin focusing more intently on Webull’s financial performance.
Presently, hedge funds and institutional investors control approximately 92.48% of outstanding shares, demonstrating substantial institutional support already exists.
Wall Street Sentiment Remains Mixed
Not all equity analysts share Engel’s enthusiastic perspective. The aggregate consensus from five Wall Street firms registers as “Moderate Buy,” though individual ratings vary considerably.
The breakdown includes one sell rating, one hold recommendation, two buy ratings, and one strong buy. The collective 12-month price objective across all analysts stands at $13.00.
Rosenblatt Securities recently reduced its target from $15.00 down to $12.00 while maintaining its buy stance. Zacks Research downgraded Webull from strong-buy to hold status in February. Wall Street Zen shifted to a sell recommendation over the recent weekend.
Regarding institutional activity, multiple investment funds established new holdings during recent quarters. Jones Financial Companies expanded its position by 860.7% during Q3. Legal & General Group, Osaic Holdings, and Tower Research Capital each initiated fresh positions.
The stock’s 50-day moving average stands at $7.05 while the 200-day moving average rests at $9.81—both considerably above the current trading price of $5.48.
The post Webull (BULL) Stock: Compass Point Analyst Projects 64% Rally on Crypto Expansion appeared first on Blockonomi.
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