BitGo (BTGO) should keep gaining from stablecoins, staking, subscriptions and derivatives as it works through weak crypto markets and moves more of its business toward recurring revenue, Wedbush said in a note Thursday.

The investment firm said BitGo's Q1 revenue was helped by digital asset sales, stablecoin services and staking, while stablecoin service revenue was supported by new clients, new partnerships and better take rates.

Customer assets on the platform fell from the prior period, but normalized growth improved as more financial institutions used BitGo for regulated digital asset services, and the company is making progress by expanding beyond market-sensitive revenue and building more stable business lines, even as digital asset prices may still create volatility, Wedbush analysts noted.

BitGo gave a cautious Q2 revenue outlook because crypto market conditions remain weak, but trading, staking, subscriptions and wallet services are expected to stay steady or improve, according to the note.

Wedbush kept its outperform rating for BitGo and maintained its $15 price target.

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