The stock of DeFi Technologies (DEFI) has seen an excessive sell-off, and the shares now present a compelling chance to acquire, according to a research note released on Thursday by Wall Street firm Benchmark, which reiterated its buy rating.The cryptocurrency exchange-traded product issuer (ETP) had a sharp dip in its shares recently, coinciding with sharp drops in altcoin values and a critical opinion piece published in a newsletter.The stock had increased by more than 330% since the start of May, according to Benchmark analyst Mark Palmer. However, it lost about half of its value in less than two days before making up most of that loss yesterday afternoon.
The majority of ETPs that DeFi provides are centered around cryptocurrencies, and Palmer noted that the decline in these tokens earlier in the week had an adverse effect on the share price. Traders may have taken some profits off the table following the recent irrational rise, but the sell-down seems excessive, and the stock’s large repricing presents a “attractive buying opportunity,” the study continued. Palmer maintained his C$3 price objective and buy rating for the stock. According to TradingView statistics, the shares fell as much as 17% in early trading on Thursday to about C$1.93, before rising close to C$2.
“Volatility in the price of altcoins should not surprise anyone who has even a casual understanding of the dynamics of the crypto market,” Palmer wrote, adding that some weakness in the stock price due to the sell-off in these tokens was understandable.
In response to the critical article that CoinSnacks published, DeFi wrote, calling it a “misleading short and distort report,” the email said.