Wall Street giant Citi (C) initiated coverage on crypto exchange OSL (0863) with a Buy/High Risk rating and a price target of HK$21.80 ($2.80), or 22 times the projected 2025 selling price.
Citi said OSL is well positioned as a regulated digital asset trading and payments platform, with strong growth prospects tied to institutional adoption of cryptocurrencies and stablecoin-related products.
The bank projects revenue growth of 80%, 60% and 36% in 2025, 2026 and 2027, driven by the expansion of payment finance (PayFi) and a broader regulated market footprint.
The firm’s analysts highlighted OSL’s strategy of prioritizing regulation, highlighting its more than 50 licenses in 10 jurisdictions and its plans to expand further in Europe, the Middle East and emerging markets.
The bank also pointed to OSL’s dominant position in the Hong Kong OTC crypto market, where it controls more than 60% share, citing liquidity, pricing and customer retention as key strengths.
OSL is also moving towards stablecoin infrastructure with upcoming launches including OSL BizPay, a lower-cost cross-border payments platform, as well as StableX for stablecoin issuance and Tokenworks for tokenization.
Citi warned of the risks of volatility, regulation and competition, but said OSL’s compliance-first approach and early leadership make it stand out in Hong Kong’s growing digital assets sector.
The stock closed 0.4% lower in Hong Kong trading at HK$16.89 ($2.17).
The Hong Kong-based company raised $300 million in a share sale in July.
Read more: Crypto Exchange OSL Group Raises $300 Million Ahead of Hong Kong Stablecoin Regulation Plan
