StoneX lifts its Securitize target 50% to $18, saying tokenized stocks give it a new way to earn. The shares fell about 10% on Monday morning

One Wall Street analyst thinks the market is pricing Securitize as the wrong kind of company. Mark Palmer of StoneX raised his price target on the tokenization firm to $18 from $12 on Monday, a 50% increase, and kept his Buy rating, The Block reported.

The argument rests on Securitize Stocks, the service launched on Thursday, October 8, that lets eligible investors trade tokens backed one-for-one by shares of companies including Apple, Nvidia and Tesla on the Solana blockchain. Until now, management has said, most tokenization revenue came from integration fees, and StoneX noted that little of the $5.3 billion in second-quarter transaction volume earned the company money. A trading venue changes that by adding transaction and servicing fees.

"We believe the stock is still being valued as a tokenization vendor even after it has evolved into a market operator," Palmer wrote.

StoneX projects revenue of nearly $120 million in 2027 and about $198.5 million in 2028, growth of roughly 65% a year. Its $18 target implies about 14.5 times enterprise value to 2028 revenue.

Investors were not persuaded on the day. The shares fell about 10% on Monday morning, The Block reported, after rallying during the week of the launch.

A price target is one analyst's opinion, and StoneX's projections depend on trading volume that the new service has yet to show.