WNDR stock is an interesting crypto play, Haywood says

It’s late October, 2023 and crypto, all of a sudden, is back in vogue.

But what to do with this information? Haywood Securities analyst Gianluca Tucci thinks he has identified a very interesting Canadian player in the space.

In a research update to clients October 24, Tucci, who has not assigned a rating or a price target on the stock, ran down the value proposition on WonderFi Technologies (WonderFi Technologies Stock Quote, Chart, News, Analysts, Financials TSX:WNDR).

The analyst says WNDR is well positioned.

“With crypto prices surging over 25% the last few weeks to ~US$35k, WNDR is well positioned to grow as Canada’s regulated crypto trading platform,” he argued. “There is market speculation that a BlackRock bitcoin ETF is in the works, which would mark a significant catalyst for the industry – the BlackRock ETF now appears on the website of the Depository Trust & Clearing Corp., a key market utility in the U.S. that processes all securities transactions. A crypto/bitcoin ETF would make it significantly easier to buy the asset, likely materially increasing the pool of potential investors. We remind readers that WNDR owns 3 of the 10 registered retail crypto trading platforms in Canada and maintains an early mover competitive advantage in the market. We also remind readers that WNDR’s infrastructure generated $118M in proforma 2021 revenue, highlighting the positive correlation its business has to crypto asset prices.”

Tucci summarized his thought about WonderFi, whose P&L statement alone differentiates it from most of the sector.

“As we look forward into 2024, the Company is focusing its efforts on organically streamlining operations and getting to profitability and is working with various authorities to build a regulatory DeFi framework,” the analyst concluded. “Given the recent combination with Coinsquare and CoinSmart, we believe WNDR is further differentiating itself in an ever-expanding ecosystem with exposure to regulated crypto & DeFi in Canada.”