Craig-Hallum Downgrades Silvergate Capital Corp. (SI) to Hold

Craig-Hallum analyst George Sutton downgraded Silvergate Capital Corp. (NYSE: SI) from Buy to Hold with a price target of $14.00.

The analyst comments "The circumstances surrounding Silvergate are very challenging and the near-term is hard to predict. The good news is total cash ($4.6B) remains in excess the deposits from digital asset customers ($3.8B) as of yearend, indicating that the bank has the resources to withstand the current storm. The bad news is that it must contend with a continuance of crypto winter, regulatory inquiries, and potential legislative action, which challenges the potential growth profile materially. Additionally, while the updated metrics in the recent business update were helpful, investors will still have to wait for its 4Q23 earnings call later this month to fully assess the fundamental standing of the bank. We have not adjusted our Q4 results or 2023 given a lack of information to do so - thus until earnings are reported in a couple weeks view our estimates as “stale.”

For an analyst ratings summary and ratings history on Silvergate Capital Corp. click here. For more ratings news on Silvergate Capital Corp. click here.

Shares of Silvergate Capital Corp. closed at $12.57 yesterday.

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