Mizuho: Gemini's Sharp Stock Decline May Already Reflect Impact of Executive Departures

Odaily News Mizuho, an investment bank, stated that despite Gemini's stock price remaining low recently, the market may have already priced in the negative impact of the management changes.

Analysts reiterated their "Outperform" rating on Gemini and maintained a $26 price target. The current stock price is approximately $5.90, having fallen 43% over the past 30 days. Mizuho pointed out that although the departures of the company's COO, CFO, and CLO are disappointing, the stock price has already fully reflected the related shock.

Regarding financial results, Gemini's preliminary revenue range is $165 million to $175 million, slightly above expectations; however, the adjusted EBITDA loss widened to approximately $257 million to $267 million, which is weaker than previous forecasts.

Mizuho believes that Gemini's announced plan to cut about 25% of its workforce and its strategy to exit the UK, EU, and Australian markets are expected to improve the cost structure and drive the company towards profitability in the medium to long term. The analyst's bull case scenario of $43 and bear case scenario of $8 are both above the current stock price.