Shares of crypto broker Voyager Digital were downgraded to neutral from buy by boutique investment firm Compass Point, which cited headwinds across the crypto industry and which questioned how the trading platform's retail investors will fare during the market rout.
- Compass Point expects more regulatory scrutiny for crypto companies that offer lending products, analyst Chris Allen wrote in a note Tuesday.
- The firm lowered its earnings estimates and cut its share-price target to C$8 ($6.23) from C$14.
- The shares, which trade on the Toronto Stock Exchange and over-the-counter in the U.S., rose about 5% Tuesday after declining on Monday. The shares have lost more than 75% this year.
- Voyager announced plans for a private placement financing Monday for $60 million.
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