UPDATE: Goldman Sachs Upgrades Silvergate Capital Corp. (SI) to Buy

January 19, 2022 4:08 PM EST
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Price: $79.15 +5.93%

Rating Summary:
    13 Buy, 12 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 19 | New: 11
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(Updated - January 19, 2022 4:10 PM EST)

Goldman Sachs analyst Will Nance upgraded Silvergate Capital Corp. (NYSE: SI) from Neutral to Buy with a price target of $166.00.

The analyst comments "Post SI's 4Q21 earnings announcement, we are upgrading shares to Buy from Neutral with a $166 price target. On the back of a topline miss, SI shares were down 25%, with the market focused on the headline miss on net interest income. With shares now trading at 2.2x tangible book value and 15.5x P/E on our 2023 estimates, shares now trade at the lowest levels of valuation since we initiated coverage, and are approaching valuation metrics of more traditional, lower growth banks (avg ~2x TBV for regional banks). Moreover, shares are trading at a significant discount to growthier banks such as SIVB, FRC and SBNY (avg ~3x TBV). We believe this represents a compelling opportunity to buy a growth oriented bank with attractive leverage to the growth in the crypto ecosystem. Inside we discuss key highlights for the quarter, as well as details behind the upgrade."

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 $103.34 yesterday.

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