Investing.com – Citizens reiterated a Market Outperform rating and $30.00 price target on SharpLink Gaming (). With the stock currently trading at $6.18, the target implies upside potential of approximately 385%.
The firm said the stock trades below the estimated value of its underlying treasury, with little credit for a management team it believes is well positioned to execute the strategy. SharpLink combines deep expertise, institutional capital markets experience, considerable treasury scale, and access to opportunities that are difficult for passive vehicles to replicate.
The discount reflects ETH volatility, depressed sentiment in crypto more broadly, and the limited operating history of the strategy, Citizens said. The stock’s extreme volatility is evident in its beta of 10.56, and InvestingPro data shows the stock has fallen 73.7% over the past year. Despite this, InvestingPro analysis suggests the stock is currently undervalued relative to its Fair Value, placing it among opportunities on the platform’s most undervalued stocks list. For investors seeking deeper insights, SBET is one of 1,400+ US equities covered by comprehensive Pro Research Reports, which transform complex data into actionable intelligence. The firm believes the discount is too wide given the company’s ability to allocate capital across different market conditions and the early progress in making its ETH more productive.
Investors are paying less than the estimated value of the underlying treasury, while retaining considerable upside from both higher ETH prices and successful execution, the firm said.
The $30 price target is based on approximately 1.35 times the firm’s 2027 estimated mNAV estimate of approximately $22.
In other recent news, SharpLink reported a significant second-quarter loss, failing to meet Wall Street’s earnings expectations despite a substantial increase in revenue. The company posted an adjusted EPS of negative $1.88, falling short of the forecasted $0.42. Revenue, however, surged to $11.53 million from $0.7 million in the same period last year, largely due to its Ethereum treasury strategy. The company experienced a net loss of $394.3 million, compared to a loss of $103.4 million a year earlier, with unrealized losses amounting to $321 million impacting the bottom line. Management remains focused on growing ETH per share through strategic capital allocation and ecosystem investments. The earnings miss was primarily due to accounting losses linked to changes in Ethereum prices. Despite the challenges, SharpLink’s revenue growth highlights the volatility and potential of its cryptocurrency-related strategies.
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