Bakkt Holdings (BKKT) is trying to reboot after a turbulent few years, Wall Street broker Benchmark said in a Monday report initiating coverage of the stock.

Benchmark started coverage of the firm with a buy rating and a $13 price target.

The shares climbed 1.3%, trading around $8.63 at publication time.

Under new CEO Akshay Naheta, the firm has shed its custody arm and is selling off its legacy loyalty business, moves meant to streamline operations and reset investor confidence, the report noted.

The company’s strategy now hinges on three initiatives: a “brokerage-in-a-box” platform that lets banks and fintechs plug in crypto services; a multinational bitcoin treasury program anchored by a planned stake in Japan’s Marusho Hotta and expansion into India and South Korea; and a stablecoin payments network called Bakkt Agent, developed with Distributed Technologies Research (DTR), analyst Mark Palmer wrote.

A key advantage, Palmer noted, is Bakkt’s regulatory footprint. It has a BitLicense and money transmitter licenses across all 50 states, which gives it a compliance moat in a crowded field.

Benchmark values Bakkt at 5x EV/EBITDA on projected 2026 earnings, landing on its $13 target.

Read more: Bakkt Names Akshay Naheta as Co-CEO Amid Stablecoin Payments Push