Shares of Silvergate Capital (SI -23.08%), a cryptocurrency banking platform, were soaring Wednesday after an analyst raised his price target for the stock from $100 to $115. As of 12:46 p.m. ET, the stock was up by 12.3%.
Wells Fargo analyst Jared Shaw kept his overweight rating on Silvergate's shares and said in his investor note that the bear case for the stock is already priced into its shares at this point, according to TheFly.com.
"We are in the nascent stages of crypto and blockchain adoption," Shaw wrote, and he clearly thinks Silvergate could benefit from the growth of those trends. Shaw's price target of $115 is about 28% higher than the $89.50 per share level Silvergate was trading at as of this writing.
Shaw's price target increase comes just one day after Silvergate reported its second-quarter results. Its non-GAAP earnings per share of $1.13 far outpaced analysts' consensus estimate of $0.84.
Silveragate CEO Alan Lane said in a press release Tuesday that the company "had another strong quarter in light of the challenging backdrop facing the broader digital currency ecosystem."
Silvergate's stock is now up by a total of 38% this week. Even with those gains, though, it remains down about 40% year to date.