Webull Corp (NASDAQ:BULL) shares are climbing Friday. Two analysts push back on the selling that followed a congressional report on the company’s China ties.
- Webull stock is trading near recent lows. Where are BULL shares going?
Scotiabank Sees the Report as a Clearing Event
Two Wall Street firms stepped in after the House Select Committee’s report hammered the stock. Both firms say the report poses little threat to the business itself.
Scotiabank analyst Lance Jessurun raised Webull to Sector Outperform from Sector Perform and kept the price target at $9. Jessurun described the report as a collection of findings that does not impose an order, a fine or a ban.
Jessurun expects the likeliest outcomes to hurt neither earnings nor the stock much. Those outcomes include stricter disclosure rules or a wall around Webull’s U.S. broker-dealer. The largest threat to results would be forcing Webull to move its China-based engineering team. That would take DOJ enforcement or an act of Congress, and the report triggers neither. As for the SEC, Jessurun called it a disclosure issue, and Webull’s 20-F already lists the headcount the committee cites.
Jessurun placed the report within the wider political fight over US-China economic ties ahead of the midterm elections. Scotiabank began coverage in early September, and a headline like this was its top worry for the stock. Now that the worry has played out, Jessurun said, the road ahead looks much clearer. Nothing in the business has changed in a material way, so the target stays put. As Webull’s messaging sharpens, each future press release should matter less.
Rosenblatt Says Headlines, Not Fundamentals, Drove the Selloff
Rosenblatt analyst Chris Brendler reiterated a Buy rating but lowered the price target 20%, to $12 from $15. Brendler blamed near-term uncertainty for the reduction, and Rosenblatt’s tone on the stock is cautiously positive.
Brendler said the committee’s report poses more of a headline risk than a risk to the business. The report strikes directly at Webull’s franchise, Brendler said, yet four factors keep the damage manageable. First, most of the committee’s case relies on facts Webull already disclosed in SEC filings or early-2025 inquiry responses. Second, the committee admits that PRC law does “not prove that PRC authorities have already accessed Webull customer data.”
Third, every one of the five policy fixes the committee proposes needs new legislation, and none would force a sale or keep Webull from serving U.S. customers. Fourth, aggressive tactics from key competitors have raised reputational risk, but Webull has weathered similar episodes and softened the blow each time. Brendler therefore sees headlines, not a changed investment case, behind the selloff.
BULL Shares Are Rising
BULL Price Action: Webull shares were up 6.55% at $6.72 at the time of publication on Friday, according to Benzinga Pro.
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