Image Source: Pexels

Keefe Bruyette analyst Michael Perito downgraded Silvergate Capital (SI) to Market Perform from Outperform with an unchanged price target of $200. The stock closed Friday down 80 cents to $215.16.

Since Oct. 1, 2020, Silvergate has been up 1,425% as the bank "has seen massive growth in its crypto banking platform," Perito tells investors in a research note.

More recently, optimism around higher interest rates and a potential stablecoin issuance opportunity has propelled the stock to all-time highs, says the analyst. While Perito believes additional upside could exist, he says Silvergate's "significant premium valuation" suggests a more balanced upside/downside scenario from here.