Silvergate Capital stock is a “Buy” according to this analyst

Silvergate Capital (SI) stock is a buy, Wells Fargo said in a note Monday.

According to the Wall Street analyst, Silvergate has potential for further growth and adoption in the crypto space, a scenario that is likely to see its price trajectory accelerate.

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Wells Fargo (WFC) initiated a hedge for the stock, assigning an overweight rating and setting a price target of $120. According to the firm, the current bearish outlook for the stock is already priced in, giving investors looking for an opportunity in the crypto banking market potential a great entry point.

Adoption in crypto

Wells Fargo notes in its report that crypto is at a stage of adoption where the entry of global institutions gives the sector plenty of room for upward growth. Already, Silvergate is seeing a huge expansion of its digital banking offering, with more customers supported by the entry of names such as Fidelity Investments, JPMorgan, PayPal and Tesla.

Silvergate’s provision of FDIC-insured services is key to its growth profile, with a 35-40% annual increase in customers since 2019.

Silvergate Stock

SI’s share price was at $61.86 in morning trading on Monday, down nearly 17% as broader markets bled amid further selling. The NYSE-listed stock is down more than 58% year-to-date, a outlook that reflects weak Bitcoin (BTC) prices as well as the broader stock market.

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