Gemini is considered a "hidden gem" with a price target of 30 USD: Mizuho

Analysts at Mizuho set a price target of 30 USD for Gemini stock (GEMI), which closed on Wednesday at 13.8 USD. They believe that Gemini's upcoming plans, including the launch of a prediction market platform and cards for small and medium-sized enterprises (SMB), could become a major growth driver.

Gemini, the crypto platform led by the Winklevoss twins, is still regarded as a “hidden gem” despite its stock plummeting since its IPO in September. Data from Google Finance shows that the stock has decreased by 56.88% since its listing, while a report from Mizuho recorded a 17% decline in Q3 compared to the S&P 500. Nonetheless, revenue in the first quarter following the IPO increased by 52%.

Mizuho continues to rate “outperform” for Gemini, highlighting two growth drivers: the prediction market and SMB cards. The company is applying for the necessary licenses and compares the prediction market to Winklevoss “early grasping Bitcoin since 2012.”

In May, Gemini submitted an application to the CFTC to operate a designated contract market, which could become a prediction market platform.

In addition, Gemini plans to launch a card for small and medium-sized enterprises after the current card program surpasses 100,000 accounts and reaches a quarterly volume of 350 million USD, with 64,000 registrations in Q3. Marketing costs increased by 17 million USD compared to the previous quarter, mostly a one-time cost for new users, but considered “worth investing”.

Analysts assess that Gemini has a competitive advantage thanks to its all-in-one application, high security, regulatory compliance, and impressive user growth rate.

The main risks include volatility in the crypto market, changes in regulations regarding securities, stablecoins, or exchange licenses.