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- Shares of crypto bank Silvergate Capital (NYSE:SI) rise 3.2% in after-hours trading as Goldman Sachs upgrades the stock to Buy from Neutral.
- The call comes after Silvergate's (SI) Q4 earnings come in worse than expected, sending the stock price down more than 25%.
- Goldman believes that shares of SI are trading at a "significant discount" to growth banks like SVB Financial (NASDAQ:SIVB), First Republic Bank (NYSE:FRC) and Signature Bank (NASDAQ:SBNY), according to a note written to clients.
- Meanwhile, SOFI stock has a Relative Strength of 30, meaning the stock is trading at an oversold condition ( >50 means the stock is overbought) based on the magnitude of recent price changes.
- Moreover, SI represents "a growth oriented bank with attractive leverage to the growth in the crypto ecosystem," Goldman highlights.
- Goldman's Buy rating diverges from the Neutral Quant Rating and agrees with the Bullish Wall Street Analyst Rating (5 Very Bullish, 1 Bullish, 3 Neutral).
- Recall last week when Silvergate got upgraded to Outperform at KBW.