Wall Street giant Citi (C) initiated coverage of crypto exchange OSL (0863) with a Buy/High Risk rating and a target price of 21.80 Hong Kong dollars ($2.80), which is 22 times the projected 2025 sale price.
Citi said OSL is well positioned as a regulated digital asset trading and payments platform, with strong growth prospects related to institutional crypto adoption and stablecoin-related products.
The bank forecasts revenue growth of 80%, 60% and 36% in 2025, 2026 and 2027, driven by the expansion of payments finance (PayFi) and a wider footprint in the regulated market.
The company’s analysts highlighted OSL’s regulatory-focused strategy, highlighting its more than 50 licenses across 10 jurisdictions and its expansion plans in Europe, the Middle East and emerging markets.
The bank also highlighted OSL’s dominant position in Hong Kong’s OTC crypto market, where it controls more than 60% of the shares, citing liquidity, pricing and customer loyalty as its key strengths.
OSL is also moving into stablecoin infrastructure with upcoming launches including OSL BizPay, a lower-cost cross-border payments platform, as well as StableX for stablecoin issuance and Tokenworks for tokenization.
Citi warned of risks from volatility, regulation and competition, but said OSL’s compliance-focused approach and early lead make it a standout company in Hong Kong’s growing digital assets sector.
The stock closed 0.4% lower in Hong Kong, at 16.89 Hong Kong dollars ($2.17).
The Hong Kong-based company raised $300 million in a July share sale.
Learn more: Crypto Exchange OSL Group Raises $300 Million Ahead of Hong Kong Stablecoin Regulation Plan
