Wall Street bank Citigroup refreshed its digital-assets stock coverage to reflect recent across-the-board declines in crypto, but remains constructive on the sector.
“Despite recent token volatility, we remain bullish on digital assets stocks,” wrote analysts led by Peter Christiansen, in a Friday report.
Issuer of the USDC stablecoin, Circle Financial (CRCL) remains Citi’s top pick, with the team reiterating its $243 price target even after the stock’s large recent drop to the current $83.60.
Christiansen’s next top picks were Bullish (BLSH) and Coinbase (COIN). “We see BLSH in the sweet spot benefiting from rising institutional (particularly in the U.S.) and TradFi participation,” he wrote. BLSH’s price target was cut to $67 from $77, still sizable upside from the current $44. COIN’s price target was held at $505 versus its current $242.
Buy-rated Strategy (MSTR) also received a price target cut following its recent plunge to the $160 area. The new price objective of $325 from $485 previously still suggests about a 100% upside.
The bank also remains positive on bitcoin miner Riot Platforms (RIOT), though cutting its price target to $23 from $28. Riot was recently changing hands at $14.
The team in addition cut its price objective for neutral-rated Gemini (GEMI) to $13 from $16, citing “increasing competitive challenges.” Shares were trading at about $11 on Friday morning.
Read more: Bitcoin Weakness Sends a Warning to Stocks, but Liquidity May Soon Turn, Citi Says