Morgan Stanley has once again lowered its 2023 EPS estimate for Silvergate Capital (NYSE: SI), arguing that the digital asset-focused bank faces a "wide range of outcomes and risks" from the demise of crypto exchange FTX.
Manan Gosalia, an equity analyst at Morgan Stanley, estimated that Silvergate's (SI) digital deposit balances for quarter-end will drop further to $5B from the previous estimate of $9B, adding that its sources of liquidity to fund deposit outflows are "more expensive than SI's zero-cost digital deposits, and will weigh on earnings."
In turn, the sell-side analyst reduced his 2023 EPS estimate further to $1.58 from $4.48, compared with the Street consensus of $4.08.
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