Rosenblatt initiates Securitize stock with buy rating on tokenization potential

Rosenblatt initiates Securitize stock with buy rating on tokenization potential

US futures rise on cooling rate fears, strong earnings; Iran strikes continue Investing.com - Rosenblatt initiated coverage on Securitize Corp (NYSE:SECZ) with a buy rating and a price target of $14.00 on Wednesday. The firm said technology has transformed almost every part of financial services, but legal ownership of most financial assets remains trapped within analog rails including paper, PDFs, and siloed ledgers from legacy providers that profit from friction and opacity. Tokenization of real world assets upgrades ownership to the digital era, providing true control that enables direct 24/7 transfer without an intermediary, instant on-chain dividends, native fractional shares, and streamlined DeFi collateral.

Rosenblatt noted that only approximately $33 billion of real world assets are tokenized today versus an addressable market of approximately $40 trillion. The firm said doubts exist about the speed of adoption and whether tokenization offers enough incentives for both issuers and investors. The newly-public company’s stock fell 36% last week, reflecting concerns about its ability to maintain its leadership position once traditional finance leaders move to protect their market share.

The stock currently trades at $7.49, down 37% over the past six months, though it remains near its 52-week low of $6.66. InvestingPro notes the stock generally trades with high price volatility, with the company’s next earnings report due in 29 days. Subscribers have access to 6 additional ProTips about SECZ’s financial position.

Rosenblatt said this view underestimates the strength of Securitize’s fully integrated model, first mover advantage, and competitive moat. The firm’s $14 price target is based on 18 times its 2028 adjusted EBITDA estimate. Securitize holds a dominant market share and native-issuance capability in the tokenization space.

In other recent news, Securitize Corp. has completed its business combination with Cantor Equity Partners II, Inc., marking its public listing on the New York Stock Exchange under the ticker symbol SECZ. This transaction is anticipated to generate approximately $400 million in gross proceeds, with Cantor Equity Partners II retaining 71.5% of trust funds after the redemption period. The U.S. Securities and Exchange Commission had previously declared the registration statement for this merger effective, clearing a significant regulatory hurdle.

In related developments, Securitize has added two banking executives, Rebecca Macieira-Kaufmann and Manolo Sánchez, to its board of directors. Macieira-Kaufmann brings experience from her senior roles at Citigroup and currently serves on the board of Fifth Era Acquisition Corporation. Benchmark has reiterated a Buy rating on Cantor Equity Partners II with a price target of $16.00, following the SEC’s clearance of the merger registration.

These developments indicate strategic moves by Securitize to strengthen its market position and governance. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.