Wall Street Analyst Views on DeFi Technologies (DEFI) Stock

The recent sell-off in DeFi Technologies’ (DEFI) stock is being regarded as an overreaction by Wall Street broker Benchmark. In a research report released on Thursday, Benchmark reiterated its buy rating on the cryptocurrency exchange-traded product issuer (ETP) and highlighted an attractive buying opportunity for investors.

Reasons Behind the Stock Decline

Shares of DEFI experienced a sharp decline in the past few days, primarily influenced by significant drops in altcoins and the impact of a negative opinion piece published in a crypto newsletter. Analyst Mark Palmer noted that the stock had surged over 330% since May, subsequently losing almost half of its value in a two-day period. However, a recovery was observed in the stock price on the following day.

Analyst’s Perspective and Stock Outlook

Despite the recent volatility, Palmer believes that the sell-off in DEFI shares is exaggerated and presents an appealing opportunity for investors. While acknowledging that the pullback could be attributed to profit-taking after a substantial rally, Palmer maintained his buy rating on the stock with a price target of C$3. The stock initially dropped by 17% to approximately C$1.93 before bouncing back to around C$2 in early Thursday trading, based on TradingView data.

DeFi Technologies has responded to a critical article published by CoinSnacks, categorizing it as a “misleading short and distort report.” Palmer emphasized that fluctuations in altcoin prices are inherent in the crypto market and that some stock weakness linked to these tokens’ sell-off is understandable.