Silvergate Capital Corp. (SI) Becomes Core Piece of Crypto Infrastructure with Fidelity Deal, PT Raised 67% to 'Street High' $150 at Canaccord Genuity

March 30, 2021 7:51 AM EDT
Get Alerts SI Hot Sheet
Price: $162.84 -0.22%

Rating Summary:
    12 Buy, 12 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 19 | Down: 18 | New: 47
Trade Now! 
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

(Updated - March 30, 2021 7:52 AM EDT)

Canaccord Genuity analyst Joseph Vafi raised the price target on Silvergate Capital Corp. (NYSE: SI) to a "Street High" $150.00 (from $90.00) after Fidelity chose Silvergate to enhance its crypto service offerings, becoming a key piece of institutional crypto infrastructure.

The analyst stated "Silvergate has a core competitive cost advantage in cypto margin lending, given its underlying bank charter which provides a very low cost of capital via raising zero interest customer deposits. We believe these new and very large Silvergate partners evaluated both business maturity and their own margin profiles on whether to provide margin lending themselves versus partnering; and they chose Silvergate. We also believe Silvergate will stay in its lane relative to risk management. If, over time, demand for margin lending exceeds Silveragate's ability to meet it internally, that an agency, fee-based model could evolve, given an attractive backdrop of well-funded yield centric investment funds who could step in."

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst PT Change, Hot Comments

Related Entities

Canaccord Genuity