Analysts at TD Cowen have lowered the target price for shares of SharpLink Gaming from $16 to $13 amid weak $ETH dynamics in the second quarter and regulatory delays. The Block reports this, citing the bank's report.
The experts also revised their year-end forecast for Ethereum, changing it to $2,370. In the previous model, the price target was significantly higher at $3,650.
In the longer term, analysts expect the following price targets for Ethereum:
- end of 2027 — $3,347;
- end of 2028 — $4,554;
- end of 2029 — $5,969.
The reason for the revision is the slower adoption of a federal regulatory framework for tokenized financial assets in the US, including delays in the passage of the CLARITY Act.
Despite lowering short-term forecasts, TD Cowen stated that the core investment thesis for SharpLink remains unchanged, pointing to the company's capital allocation in June. It included $75 million in direct financing, the purchase of 10,000 $ETH, and the buyback of 2.13 million common shares at an average price of $4.69.
According to the bank's estimates, SharpLink's accumulated coin holdings will reach 940,000 $ETH by year-end, with a net asset value of $9.13 per share. More accurate forecasts can be made after the quarterly report in August, the analysts clarified.
At the time of writing, SBET shares are trading around $6. Over the past week, the stock has gained more than 5%.
Recall that in May, SharpLink CEO Joseph Shalom criticized Strategy's approach to managing crypto assets and stated that Ethereum companies are moving away from the capital management model popularized by Michael Saylor.
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