Voyager Digital cut to Neutral at Compass Point on crypto market headwinds

Compass Point analyst Chris Allen on Tuesday has downgraded cryptocurrency trading platform Voyager Digital (OTCQX:VYGVF) to Neutral from Buy given broader headwinds in the decentralized space. Specifically, Allen pointed to prospects for increased regulatory scrutiny for crypto-focused firms, "particularly for those companies that offer lending products," he wrote in a note. As a result, the analyst has lowered 2023 EPS estimate to C$0.39 ($0.30) from C$0.53. He also cut his price target to C$8 from C$14, representing a 3.5x enterprise value/revenue multiple in 2022. Meanwhile, shares of VYGVF are rising in afternoon trading, as bitcoin (BTC-USD +2.9%) manages to hold modest gains over $30K. Earlier this week, (May 16) Voyager Digital Q3 earnings reflected user growth, but transaction revenue slid.