WonderFi Technologies keeps $0.65 target at Haywood

Following a corporate update, Haywood analyst Gianluca Tucci remains bullish on WonderFi Technologies (WonderFi Technologies Stock Quote, Chart, News, Analysts, Financials TSX:WNDR).

On February 19, WNDR issued an update on its January progress, estimating that revenue and interest income was between $7.75-million and $8.25-million.

“Coming off a record fourth quarter of 2024, the first month of 2025 demonstrated continued momentum, as Wonderfi experienced strong trading volumes and user activity across the Bitbuy and Coinsquare platforms,” CEO Dean Skurka said. “Wonderfi’s deliberate positioning and investment in its platforms has enabled it to become an important and leading beneficiary of the growth in the adoption of digital assets, and it is reflected in our results.”

Tucci summarized the development.

“WonderFi provided a January 2025 update, signaling positive growth and momentum across several key financial and operational metrics,” he wrote. “The Company reported strong January revenues and interest income between $7.75M-$8.25M, marking a ~14% increase from the Q4/24 monthly average. This compares to our Q1/25 revenue forecast of $15.2M – we note WNDR delivered more than half of our quarterly revenue estimate in the first month of the year. It also reported $543M in monthly trading volume, +44% from the Q4/24 monthly average, with monthly active users growing to 127k, +15% from the Q4/24 monthly average. Client assets have grown to $2.4B, +14% MoM. The Company also notified the market of a Nasdaq listing application, where it is in the process of being reviewed, and the exercise of 15.9M warrants in January, adding $4.8M in cash to its treasury. We estimate the Company has a proforma cash balance of ~$45-50M and a proforma cash & crypto balance closer to ~$60M. We highlight the Company’s strong momentum and the increasing adoption of digital assets, positioning WonderFi for further success in a rapidly evolving market. Today’s updates are seen as positive as WonderFi continues to expand its market share and enhance its position within the digital asset and fintech ecosystem. This update reinforces our optimistic outlook for WonderFi, particularly with its growing user base, financial performance, and strategic initiatives aimed at expanding its market presence. We leave our estimates unchanged at this time.”

In a research update to clients February 19, the analyst maintained his “Buy” rating and price target of $0.65 on WNDR.

Tucci thinks the company will post Adjusted EBITDA of $22.0-million on revenue of $64.0-million in fiscal 2025.

“We believe WNDR’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, the analyst added.