Wall Street bank Citigroup updated its coverage of digital asset stocks to reflect the recent widespread declines in cryptocurrencies, but remains constructive on the sector.
“Despite recent token volatility, we remain bullish on digital asset stocks,” wrote analysts led by Peter Christiansen, in a Friday report.
USDC stablecoin issuer Circle Financial (CRCL) remains Citi’s top pick, with the team reiterating its $243 price target even after the stock’s recent big 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 growing institutional participation (particularly in the US) and TradFi,” he wrote. BLSH’s price target was lowered to $67 from $77, still a considerable upside from the current $44. COIN’s price target remained at $505 from its current $242.
The Buy Rated Strategy (MSTR) also received a price target cut following its recent drop to the $160 area. The new price target of $325 from $485 previously still suggests an upside of around 100%.
The bank also remains positive on bitcoin miner Riot Platforms (RIOT), although it cut its price target from $28 to $23. Riot recently changed hands at $14.
Additionally, the team lowered its price target for neutral-rated Gemini (GEMI) to $13 from $16, citing “growing competitive challenges.” Shares were trading at about $11 on Friday morning.
Read more: Bitcoin weakness sends warning to stocks, but liquidity could change soon, says Citi
