Crypto stock WonderFi will benefit from a Trump presidency, Haywood says

The anticipated winners and losers are being debated right now, but one Canadian company stands to benefit from four more years of Trump, says Haywood analyst Gianluca Tucci.

Tucci, in a research update to clients November 13, singled out WonderFi (WonderFi Stock Quote, Chart, News, Analysts, Financials TSX:WNDR) as a company that will “Make Crypto Great Again”.

“Under a Trump presidency, cryptocurrency markets are poised to benefit significantly from favourable regulatory and economic policies,” the analyst argued. “Trump’s historically positive stance on deregulation, his pro-business agenda, and his openness to innovation could create a supportive environment for crypto assets to thrive.”

Tucci says even if the policies of the administration have unintended effects, WNDR is poised to benefit from them.

“while Trump has historically advocated for a strong dollar, his policies—especially those around aggressive fiscal spending—can have inflationary effects. Cryptocurrencies like Bitcoin, with their capped supply, offer a hedge against inflation and may attract investors looking for alternative assets to preserve their wealth.”

In the research update, Tucci maintained his “Buy” rating on WonderFi, while raising his price target from $0.45 to $0.60, implying a return of 173% at the time of publication.

Tucci thinks the company will post Adjusted EBITDA of $10.3-million on revenue of $51.3-million in fiscal 2024. He expects those numbers will improve to Adjusted EBITDA of $21.3-million on a topline of $61.6-million in fiscal 2025.

“We believe WONDER’s first/early mover advantage in the Canadian crypto market is a significant one as it expands its market leading position in the country with international optionality. Our target moves higher on increased estimates and an increase in our terminal EBITDA multiple to 18x from 13x,” the analyst concluded.