Silvergate Capital stock climbs after Morgan Stanley weighs in with bullish rating

Silvergate Capital (NYSE:SI) stock jumps 5.0% after Morgan Stanley analyst Ken Zerbe initiates coverage of the crypto-focused bank with an Overweight rating. "We see a 3:1 bull:bear skew, but recognize that SI has the widest risk-reward of any bank we cover as it growth is tied directly to the health and growth of the cryptocurrency industry," Zerbe writes in a note to clients. Silvergate's (SI) model is based on a real-time payments platform — the Silvergate Exchange Network — that facilitates the transfer of U.S. dollars between its digital currency customers, giving SI's investors "a nearly pure-play way to participate in the rapid growth of the nascent cryptocurrency industry," he said. The analyst expects 37% annual EPS growth through 2025 and could increase even more with the introduction of new lending or fee-based products. Earning asset balances are expected to grow 48% over the next 12 months "with minimal credit risk as