Wall Street Bets on SharpLink Gaming: Analysts See Upside Despite Crypto Volatility
SharpLink Gaming, Inc. (NASDAQ: SBET), a performance marketing firm focused on the sports betting and iGaming sectors, has become a focal point for Wall Street analysts betting on a small-cap turnaround. Despite recent volatility in its substantial cryptocurrency holdings, the company continues to receive optimistic ratings from several investment banks.
Bernstein's Gautam Chhugani reiterated a Buy rating on January 12, setting a price target of $24. This followed an earlier update from Alliance Global Partners' Brian Kinstlinger, who also maintained a Buy rating on January 7 but lowered his firm's price target from $48 to $20. Alliance Global noted SharpLink's holding of 864,402 Ethereum (valued at approximately $2.9 billion) but pointed to a roughly 30% decline in ETH's price since their last assessment as the reason for the target reduction.
The bullish sentiment was further echoed by Cantor Fitzgerald, which initiated coverage on January 5 with a Buy rating and a $15 price target. Analyst Brett Knoblauch highlighted the management team's "significant expertise in crypto and the Ethereum ecosystem," suggesting this knowledge could lead to successful deployment strategies that accelerate the growth of the company's ETH assets.
SharpLink operates primarily through its PAS.net affiliate network, driving customer acquisition for online sportsbooks and casinos. The analysts' focus, however, has shifted markedly to its balance sheet strategy and its large, albeit volatile, cryptocurrency position.
Market Context & Analyst Commentary
The divergent price targets reflect a broader debate on Wall Street about how to value companies with major crypto exposures. While the underlying iGaming marketing business provides cash flow, SharpLink's fate is increasingly tied to the performance of Ethereum. This dual nature offers significant upside potential but introduces substantial risk, placing it squarely in the high-risk, high-reward segment of small-cap stocks.
Reader Reactions:
"As a long-term investor, I see the analyst confidence as a strong signal," says Michael Torres, a portfolio manager from Austin. "The management's crypto expertise is a real differentiator. If Ethereum rebounds, SBET could see explosive growth. It's a calculated bet on both iGaming and blockchain convergence."
"This is pure speculation dressed up as analysis," argues Sarah Chen, a freelance financial writer based in New York. "Lowering a price target from $48 to $20 in days isn't 'reiterating a Buy'—it's an admission the previous model was wrong. The stock is being propped up by crypto hype, not fundamentals. Retail investors should be extremely cautious."
"The technical setup looks interesting here," notes David Park, a day trader from Chicago. "The volume spikes on these analyst notes suggest momentum is building. It's on my watchlist for a potential breakout if it holds above key support levels."
"I've followed the iGaming affiliate space for years," comments Linda Gibson, a retired marketing executive in Florida. "SharpLink's core business is solid, but this massive bet on Ethereum is a wild card. It could either catapult them ahead or sink the ship. It's not for the faint of heart."