Shares in Securitize jumped 22% on Tuesday after the tokenisation company reported stronger than expected quarterly revenue, announced a $50 million share buyback and won an upgrade from Citigroup.

The stock closed at $8.53 on the New York Stock Exchange, up from $6.97 at Monday's close, after rising as much as 41% to $9.86 during the session, CoinDesk reported. The rally stood out on a day when most crypto-linked stocks fell, as hotter than expected US inflation data pushed bitcoin below $73,000.

Securitize, which provides technology for issuing and managing digital securities on blockchain networks, reported third-quarter revenue of $18.6 million, above the $17.6 million expected by analysts, according to MarketBeat. It was the company's second-highest quarterly revenue total.

Loss wider than forecast

The results were not all positive. Securitize reported a loss of $0.41 per share for the quarter, wider than the $0.22 loss analysts had expected, and a quarterly net loss of $66.3 million. The company said a large part of the loss reflected non-cash charges linked to its listing.

Investors focused instead on the growth in the underlying business and on what management did with the cash. Alongside the results, Securitize announced a $50 million share repurchase programme and a deal to acquire River One, an institutional asset-backed lending business, giving it a route into a market it estimates at $6 trillion.

Citigroup upgraded the shares from neutral to buy on Tuesday and set a $14 price target, implying upside of about 103% from Monday's close. Needham also raised its price target, from $11 to $13, while keeping a buy rating.

Still down sharply over the past month

The jump only partly repairs recent damage. Even after Tuesday's surge, the shares were still down 17% over the past month, CoinDesk reported, after a steep slide from a 12-month high of $17.01.

Securitize began trading publicly on the New York Stock Exchange in July, and its progress is being watched as a test of investor appetite for companies that bring traditional financial assets onto blockchains. Its platform supports the tokenisation of assets such as private fund interests, along with investor onboarding, compliance and recordkeeping.

Analysts remain split. Of the eight analysts tracked by MarketBeat, six rate the stock a buy, one rates it a hold and one rates it a sell, giving it a consensus rating of moderate buy and an average price target of $14.20. Whether Tuesday's rebound holds will depend on the company turning record tokenisation volumes into sustained profits.