Compass Point downgraded Silvergate Capital to Sell from Neutral without a price target following the company’s announcement late Friday that it has discontinued the Silvergate Exchange Network. The network is a key pillar of the bank’s business model, and the entire reason why substantially all of the bank’s deposit customers keep their balances at the bank, the analyst tells investors in a research note. Citing the "complete lack of visibility" into fundamentals and the bank as a going concern, Compass sees a "lopsided risk/reward in the shares to the downside."
Published first on TheFly
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