Sign up to save your podcasts
Or
Share Why Are Analysts Optimistic About Coinbase Stock?
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
Why Are Analysts Optimistic About Coinbase Stock?
COIN shares have declined from their early November highs, but analysts anticipate further gains. Here are three reasons why Wall Street believes Coinbase stock is currently a good buy.
Coinbase (COIN) is the largest cryptocurrency exchange platform by trading volume in the United States. COIN shares, however, have been quite volatile since going public in April.
Coinbase appears to be extremely sensitive to changes in the price of cryptocurrencies. Coinbase's price has fluctuated between a 52-week high of $429 and a 52-week low of $208 in the last 52 weeks. Shares are currently trading nearly 30% below their initial purchase price.
Nonetheless, the Wall Street consensus is bullish, with analysts forecasting a massive increase in COIN's value by 2022.
The following are the opinions of industry analysts regarding Coinbase's stock.
The prevailing wisdom suggests a strong buy.
At the moment, Wall Street sentiment is extremely bullish on Coinbase stock. It currently has a strong Buy rating and a price target of $398. This equates to a potential gain of more than 63% over current levels.
The Bull Case: $600 as a Suggested Purchase Price
Lisa Ellis of MoffettNathanson is Coinbase's largest bull at the moment. The stock has a target price of $600, which she has set. This implies a whopping 146 percent increase in value relative to current levels.
COIN was dubbed a "must own" stock when the company went public. Her bull case was based on Coinbase's position as a leading technology company that develops the infrastructure necessary to enable a broader developer ecosystem to use cryptocurrencies. Her target price of $600 was calculated using a revenue multiple of 2023.
A month ago, the analyst reiterated her bullish price target on the stock, citing the company's recent partnerships with Meta (FB) - Get Meta Platforms Inc. Class A Report and the NBA, the implications of the ProShares Bitcoin ETF, and the ongoing dialogue between Coinbase and the US Securities and Exchange Commission regarding cryptocurrencies.
Finally, she sees a bright future for the entire crypto ecosystem, believing that the current decline in digital assets will be much shorter in duration than the declines experienced in 2017 and 2018.
The Bear Case: $160 as a Suggested Purchase Price
On the bearish side, Autonomous Research analyst Christian Bolu initiated coverage of COIN a couple of months ago with a Sell recommendation and a $160 12-month price target. This corresponds to a 35% reduction in value relative to current levels.
The analyst expressed concern about Coinbase's perceived lack of innovation in the cryptocurrency space and its consequent loss of market share to competitors such as Robinhood (HOOD) - Get Robinhood Markets, Inc. Class A Report, FTX, and — most notably — Binance.
Bolu wrote that if Coinbase continues to lag, it risks being left behind in the same way that Netscape was during the early internet era.
Finally, he justified his bearish price target by pointing out that the stock is currently trading at 7 times projected gross profit in 2023. This is compared to traditional exchanges, which are expected to grow at a slower pace and experience greater revenue volatility.
Support us!
View all episodes
By Crypto PiratesCOIN shares have declined from their early November highs, but analysts anticipate further gains. Here are three reasons why Wall Street believes Coinbase stock is currently a good buy.
Coinbase (COIN) is the largest cryptocurrency exchange platform by trading volume in the United States. COIN shares, however, have been quite volatile since going public in April.
Coinbase appears to be extremely sensitive to changes in the price of cryptocurrencies. Coinbase's price has fluctuated between a 52-week high of $429 and a 52-week low of $208 in the last 52 weeks. Shares are currently trading nearly 30% below their initial purchase price.
Nonetheless, the Wall Street consensus is bullish, with analysts forecasting a massive increase in COIN's value by 2022.
The following are the opinions of industry analysts regarding Coinbase's stock.
The prevailing wisdom suggests a strong buy.
At the moment, Wall Street sentiment is extremely bullish on Coinbase stock. It currently has a strong Buy rating and a price target of $398. This equates to a potential gain of more than 63% over current levels.
The Bull Case: $600 as a Suggested Purchase Price
Lisa Ellis of MoffettNathanson is Coinbase's largest bull at the moment. The stock has a target price of $600, which she has set. This implies a whopping 146 percent increase in value relative to current levels.
COIN was dubbed a "must own" stock when the company went public. Her bull case was based on Coinbase's position as a leading technology company that develops the infrastructure necessary to enable a broader developer ecosystem to use cryptocurrencies. Her target price of $600 was calculated using a revenue multiple of 2023.
A month ago, the analyst reiterated her bullish price target on the stock, citing the company's recent partnerships with Meta (FB) - Get Meta Platforms Inc. Class A Report and the NBA, the implications of the ProShares Bitcoin ETF, and the ongoing dialogue between Coinbase and the US Securities and Exchange Commission regarding cryptocurrencies.
Finally, she sees a bright future for the entire crypto ecosystem, believing that the current decline in digital assets will be much shorter in duration than the declines experienced in 2017 and 2018.
The Bear Case: $160 as a Suggested Purchase Price
On the bearish side, Autonomous Research analyst Christian Bolu initiated coverage of COIN a couple of months ago with a Sell recommendation and a $160 12-month price target. This corresponds to a 35% reduction in value relative to current levels.
The analyst expressed concern about Coinbase's perceived lack of innovation in the cryptocurrency space and its consequent loss of market share to competitors such as Robinhood (HOOD) - Get Robinhood Markets, Inc. Class A Report, FTX, and — most notably — Binance.
Bolu wrote that if Coinbase continues to lag, it risks being left behind in the same way that Netscape was during the early internet era.
Finally, he justified his bearish price target by pointing out that the stock is currently trading at 7 times projected gross profit in 2023. This is compared to traditional exchanges, which are expected to grow at a slower pace and experience greater revenue volatility.
Support us!