Analysts view Webull selloff as overdone following House panel report; shares rise
Investing.com -- Webull Corp (NASDAQ: BULL) shares surged in Friday premarket trading as a fresh analyst endorsement provided relief to investors shaken by a steep selloff earlier in the week.
The stock rose 4.2% before the opening bell after Scotiabank upgraded the digital brokerage to Sector Outperform from Sector Perform, establishing a $9.00 price target. The upgrade follows a sharp decline on Wednesday, when the stock tumbled almost 20% after news surfaced regarding a U.S. House Select Committee report detailing the firm’s structural ties to China.
Against that backdrop, Scotiabank analyst Lance Jessurun highlighted a compelling valuation opportunity, noting that the market reaction appeared vastly overdone. He emphasized that the congressional panel's report represents a collection of findings rather than a punitive enforcement action carrying fines, orders, or operational bans.
Ultimately, the firm views the broader legislative scrutiny as headline risk tied to ongoing U.S.-China political debate ahead of midterm elections rather than a fundamental break in the investment thesis. Key risks cited by critics, such as a potential forced relocation of Webull's China-based engineering team, would require explicit Department of Justice enforcement or congressional legislation, neither of which this report mandates.
Meanwhile, Rosenblatt Securities adjusted its target price on Webull to $12.00 from $15.00 while maintaining a Buy rating. Rosenblatt analyst Chris Brendler noted that while headline risk remains elevated amid aggressive posturing from competitors, the underlying business case remains intact.
Brendler pointed out that the committee’s key allegations rest on information Webull had already disclosed in SEC filings, including its 20-F headcount disclosures. Furthermore, all policy remedies proposed by the committee would require new legislation, none of which currently threaten a forced sale or prohibit Webull from serving its U.S. customer base.
Following a month in which the stock lost roughly 40% of its value, Wall Street appears to be refocusing on Webull's valuation discount. Analysts suggest that as regulatory clarity improves, subsequent news cycles will carry diminishing weight on the stock's trajectory.