Summary : Analyst Mark Palmer initiated shares of the crypto-focused bank with a buy rating and a $135 price target, saying in a note to clients that shares are trading cheap given the company’s growth potential. “We believe SI’s better-than-expected 2Q22 report provided an important demonstration of the resilience of its business model amidst a severe downturn in the crypto space, and we view the company’s shares as inexpensive, especially in light of the anticipated launch of its new stablecoin offering, which we expect to serve as an accelerant of its revenue and earnings growth,” Palmer wrote. On the stablecoin front, Palmer pointed to Silvergate’s regulated financial institution status as a strength that should help its new offering pass in a world that has come under heightened regulatory pushback. Palmer also sees value in the company’s proprietary exchange system known as SEN, noting that customers are turning to the network because its “faster payments translate into greater capital efficiency.”
Silvergate Capital remains a resilient name that investors continue to underappreciate, BTIG said. Analyst Mark Palmer initiated shares of the crypto-focused bank with a buy rating and a $135 price target, saying in a note to clients that shares are trading cheap given the company’s growth potential. “We believe SI’s better-than-expected 2Q22 report provided an important demonstration of the resilience of its business model amidst a severe downturn in the crypto space, and we view the company’s shares as inexpensive, especially in light of the anticipated launch of its new stablecoin offering, which we expect to serve as an accelerant of its revenue and earnings growth,” Palmer wrote. On the stablecoin front, Palmer pointed to Silvergate’s regulated financial institution status as a strength that should help its new offering pass in a world that has come under heightened regulatory pushback. Palmer also sees value in the company’s proprietary exchange system known as SEN, noting that customers are turning to the network because its “faster payments translate into greater capital efficiency.” Shares of Silvergate have slipped more than 35% this year as cryptocurrencies get battered. However, the stock could rally nearly 41% from Wednesday’s close given the firm’s price target. — CNBC’s Michael Bloom contributed reporting
