Citi Launches Coverage on OSL, Assigns Buy Rating and HK$21.80 Target
Citi (C) has initiated coverage of Hong Kong-based crypto exchange OSL (0863) with a buy/high-risk rating and a price target of HK$21.80 ($2.80), representing 22x projected 2025 price-to-sales.
Analysts said OSL is well-positioned as a regulated digital-asset trading and payments platform, with growth prospects fueled by institutional crypto adoption and stablecoin offerings. Citi forecasts revenue growth of 80% in 2025, 60% in 2026, and 36% in 2027, driven by PayFi expansion and broader market penetration.
The bank emphasized OSL’s regulatory-first approach, noting over 50 licenses across 10 jurisdictions and plans to expand into Europe, the Middle East, and emerging markets. OSL also dominates Hong Kong’s OTC crypto market, controlling more than 60% of market share, with liquidity, pricing, and client retention as key advantages.
OSL is building out stablecoin infrastructure with products including OSL BizPay for low-cost cross-border payments, StableX for stablecoin issuance, and Tokenworks for tokenization.
Citi acknowledged risks from volatility, regulatory changes, and competition, but said OSL’s early lead and compliance-focused strategy make it a standout in Hong Kong’s crypto sector.
Shares closed 0.4% lower at HK$16.89 ($2.17). In July, the firm raised $300 million through an equity sale.
