Gemini Gets ‘Market Perform’ Rating From KBW, Seen as Promising But Still Unprofitable

Investment bank KBW has initiated coverage of Gemini Space Station (GEMI) with a market perform rating and a $27 price target, calling the exchange a strong long-term player in the digital asset space despite near-term profitability challenges.

In a note led by analyst Bill Papanastasiou, KBW said Gemini’s fundamentals and platform design position it well for the next phase of crypto adoption. However, the bank noted that GEMI’s discounted valuation relative to Coinbase (COIN) is justified, citing “elevated execution and market risks” as the company continues scaling operations.

Gemini, founded by Cameron and Tyler Winklevoss, went public last month at $28 per share, giving the firm a valuation of more than $3 billion.

KBW highlighted the resolution of Gemini’s Earn program dispute as a key milestone that clears the path for new product launches and a stronger competitive stance. The firm also pointed to Gemini’s new partnership with Nasdaq, which could generate up to $47.7 million in short-term revenue through custody and staking services for listed firms, with further upside from ongoing tokenization initiatives.

The report praised Gemini’s integrated app experience and high insider ownership as stabilizing factors that should help sustain user growth during volatile market cycles.

Looking ahead, KBW projects Gemini’s revenue to expand at a 53% annualized rate over the next three years — outpacing most peers — and expects the company to achieve profitability by late 2027.

Despite the cautious tone, KBW called Gemini a “balanced but promising bet” for investors positioning for a prolonged crypto uptrend.

GEMI shares rose 2% in premarket trading to $25.80.