Silvergate Capital cut to Neutral at BofA on lower stablecoin expectations

BofA analyst Brandon Berman downgraded Silvergate Capital to Neutral from Buy with a price target of $37, down from $72, to reflect his "diminished expectations" for stablecoin to be a contributor to FY24 earnings. He’d previously argued after Q3 earnings that operating results could be nearing a trough, but "We were wrong," Berman said. Binance’s announced acquisition of FTX, which subsequently fell through, "is a black eye on the broader crypto market," the analyst added.