Rosenblatt Securities has issued a buy rating on Webull (NASDAQ: BULL), arguing that its 28% drop over the last three months presents a buying opportunity before the company reports its Q4 earnings.
Rosenblatt’s buy rating comes with a $15 price target, implying nearly double upside from its current trading price of $7.83. Rosenblatt projects Webull to post a fourth-quarter revenue of $162 million, compared to a Wall Street consensus of $151 million.
The online equity and crypto brokerage firm has significantly underperformed the broader market recently, with the S&P 500 rising 3% during the same period Webull shares declined.
Rosenblatt analyst Chris Brendler argues this weakness is largely due to investors mislabeling the company as a cryptocurrency stock.
The research note highlights that Webull shares have traded with a high correlation to cryptocurrency platforms like Coinbase (NASDAQ: COIN). However, the firm pointed out that Webull’s cryptocurrency business is currently immaterial compared to its brokerage for equities and other assets.
While the company previously had a significant cryptocurrency segment that peaked at 20% of revenue in the second quarter of 2022, that business has since been restructured. Revenue from the segment was negligible last quarter and is not expected to be material until well into 2026.
Rosenblatt emphasized that Webull’s core business remains driven by equity and options trading, which have shown resilience despite broader market volatility. United States market data indicates option trading volumes increased 13% quarter-over-quarter.
This growth is being driven by newer products, specifically zero days to expiration (0DTE) options, which now account for more than 60% of Webull’s total options volume. Rosenblatt expects Webull to exceed earnings expectations for the fourth quarter due to its significant leverage to this heightened activity.
“Given BULL’s active trader customer base and strength in these newer product types, we think the company is poised for another strong quarter,” the report states.
The report also details a significant valuation disconnect between Webull and its industry peers. Shares of Webull currently trade at approximately 5.9 times estimated 2026 enterprise value to sales. By comparison, rival Robinhood (NASDAQ: HOOD) trades at roughly 20.0 times the same metric.
Analysts attribute this discount to several factors, including Webull’s relatively short track record as a public company. The brokerage went public via a de-SPAC transaction in April 2025. Additionally, Rosenblatt noted that visibility is somewhat lower than peers due to a lack of monthly data reporting.
Looking ahead to 2026, Rosenblatt pointed to several key growth initiatives that could serve as catalysts for the stock. These include a successful entry into prediction markets and continued international expansion. The rollout of Webull Premium is also expected to contribute more meaningfully to revenue.
“In our view, Webull’s compelling growth story is yet to resonate with investors, but we see potential catalysts ahead,” Brendler wrote in the note. The firm’s $15 price target is based on a valuation of 25 times its 2027 adjusted EBITDA estimate.
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