TD Cowen analysts have reduced their price target for SharpLink Gaming shares from $16 to $13, citing weak performance of Ethereum (ETH) in the second quarter and regulatory delays. This information was reported by The Block, referencing the bank's report.
The experts have also revised their Ethereum price forecast for the end of the year, now projecting it to be $2370, down from a previous estimate of $3650.
Looking further ahead, analysts expect the following price targets for Ethereum:
- end of 2027 — $3347;
- end of 2028 — $4554;
- end of 2029 — $5969.
The adjustments were attributed to a slower-than-expected rollout of federal regulations for tokenized financial assets in the U.S., including delays in the passage of the CLARITY Act.
Despite the downward revision of short-term forecasts, TD Cowen maintains its overall investment strategy for SharpLink, highlighting the company’s capital allocation in June, which included direct funding of $75 million, the purchase of 10,000 ETH, and a buyback of 2.13 million common shares at an average price of $4.69.
The bank estimates that SharpLink's accumulated ETH holdings will reach 940,000 by the end of the year, with a net asset value of $9.13 per share. More precise projections will be possible following the quarterly report in August, analysts noted.
As of the time of writing, SBET shares are trading around $6, having gained over 5% in the past week.
Source: Yahoo Finance.It's worth noting that in May, SharpLink CEO Joseph Shalom criticized Strategy's approach to crypto asset management, stating that Ethereum companies are moving away from the capital management model popularized by Michael Saylor.