Silvergate Capital stock gains after upgrade to Buy at Goldman on overextended drop

Shares of crypto bank Silvergate Capital (NYSE:SI) rise 3.2% in after-hours trading as Goldman Sachs upgrades the stock to Buy from Neutral. The call comes after Silvergate's (SI) Q4 earnings come in worse than expected, sending the stock price down more than 25%. Goldman believes that shares of SI are trading at a "significant discount" to growth banks like SVB Financial (NASDAQ:SIVB), First Republic Bank (NYSE:FRC) and Signature Bank (NASDAQ:SBNY), according to a note written to clients. Meanwhile, SOFI stock has a Relative Strength of 30, meaning the stock is trading at an oversold condition ( >50 means the stock is overbought) based on the magnitude of recent price changes. Moreover, SI represents "a growth oriented bank with attractive leverage to the growth in the crypto ecosystem," Goldman highlights. Goldman's Buy rating diverges from the Neutral Quant Rating and agrees with the Bullish Wall Street Analyst Rating (5 Very Bullish, 1 Bullish, 3 Neutral).