Citizens has initiated coverage on SharpLink Gaming (SBET) with an Outperform rating and a $50 price target, implying more than 200% upside potential, the bank said in a Wednesday report.
Shares rose 2% in early trading, around $15.45.
The bank’s bullish stance is based on a positive long-term view of ether’s price trajectory, forecasting ETH to surpass $7,000 by 2026 and potentially surpass $20,000 by 2030.
The report maintains that SharpLink has quickly become one of the most ambitious ether providers. treasury traders in public markets. After accumulating a substantial position in ETH, the company has begun deploying those assets into staking and other return-generating strategies designed to increase value over time.
The stock is a new entry point for investors seeking leveraged exposure to Ethereum growth, analysts led by Devin Ryan wrote.
Instead of functioning as a passive vehicle containing bitcoins or ether, SharpLink aims to actively manage its ETH balance sheet, issuing shares at a premium to NAV or repurchasing them when they trade below NAV, and using its ETH reserves to capture on-chain performance opportunities, the analysts wrote.
Citizens describes this approach as a “flywheel” that can drive NAV per share higher as the Ethereum ecosystem expands and institutional adoption accelerates.
The bank’s analysts also assigned a premium valuation to SharpLink based on the company’s leadership and strategy. This includes Ethereum co-founder Joseph Lubin as president and former BlackRock executive Joseph Chalom as co-CEO, describing the team as ideally positioned to scale a treasury model that combines crypto-native expertise with institutional capital market experience.
SharpLink’s strategy positions it to become a market leader as ether matures into a global financial asset, according to Citizens. By combining on-chain operating leverage with off-chain financial discipline, stocks could offer a compelling alternative to traditional digital asset investment vehicles, and one that investors can reward with a valuation premium.
SharpLink raised $76.5 million in a direct stock offering at an above-market price, the company said Thursday.
