Silvergate Capital price target lowered to $25 from $50 at Wells Fargo

Wells Fargo analyst Jared Shaw lowered the firm’s price target on Silvergate Capital to $25 from $50 and keeps an Underweight rating on the shares. The analyst continues to believe these are early days of broader digital asset adoption, but the growth outlook for Silvergate as a pure-play crypto banking solution is significantly limited in the current environment. The company is seeing volume reductions in its Silvergate Exchange Network, which is its genesis for growth and profitability, he contends. While Silvergate is among the most asset-sensitive banks, balance sheet uncertainty from deposit outflows due to depressed crypto currency values more than offset the benefits from higher rates, Shaw adds.