Silvergate Capital price target lowered to $25 from $150 at Canaccord

Canaccord analyst Joseph Vafi lowered the firm’s price target on Silvergate Capital to $25 from $150 and keeps a Buy rating on the shares. The analyst notes that FTX was simply another deposit customer, just like every other major crypto exchange, institution or large enterprise player in crypto. FTX was nothing more and nothing less. In our view Silvergate embraces the bank regulatory infrastructure at an exemplary level; the bank managed a steep and rapid deposit decline that would have been a mortal blow for other bank models. Vafi said he expects the company’s quarterly profitability to normalize to somewhere by mid Q2 to the range of where it was back in late 2020 when the deposit base was similarly sized to what it is now.