Citi Initiates Coverage on OSL with Buy Rating and HK$21.80 Target
Citi (C) has launched coverage of Hong Kong-based crypto exchange OSL (0863), assigning a buy/high-risk rating and setting a target price of HK$21.80 ($2.80), roughly 22x projected 2025 price-to-sales.
Analysts highlighted OSL’s position as a regulated digital-asset trading and payments platform, citing strong growth potential from institutional crypto adoption and stablecoin-related products. Citi forecasts revenue growth of 80% in 2025, 60% in 2026, and 36% in 2027, driven by PayFi expansion and broader market penetration.
OSL’s regulatory-first approach includes over 50 licenses across 10 jurisdictions, with plans to expand into Europe, the Middle East, and emerging markets. The firm commands a 60% share of Hong Kong’s OTC crypto market, benefiting from liquidity, pricing, and client retention.
The exchange is also developing stablecoin infrastructure with initiatives like OSL BizPay for cross-border payments, StableX for stablecoin issuance, and Tokenworks for tokenization.
Citi acknowledged volatility, regulatory, and competitive risks, but said OSL’s early lead and compliance focus make it a standout in Hong Kong’s crypto sector.
Shares closed 0.4% lower at HK$16.89 ($2.17), following a $300 million equity raise in July.
