Coinbase Global Inc. received another positive approval from a Wall Street analyst on Wednesday, with Rosenblatt Securities analyst Sean Horgan expecting the cryptocurrency exchange to be a “long-term category leader”.
Horgan initiated Coinbase COIN coverage,
with a buy rating and a price target of $ 450, which is about 46% above current levels.
That keeps it unanimous, as all six analysts polled by FactSet have the equivalent of buy ratings on Coinbase. The average price target is $ 509.00, which is more than double the reference price of $ 250 set when the stock went public last week.
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“Crypto has reached a turning point on its path to legitimacy, and we see this as a long-term disruptive trend that is only in its early innings.”
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The stock fell 3.7% in morning trading on Wednesday and traded 5.9% lower than where it closed on the first day of trading on April 14.
Horgan said he was optimistic about Coinbase’s long-term benefits as it will benefit from the growing adoption and adoption of cryptocurrencies. However, he said he was more cautious for the short term as “stocks are at risk downside due to the decline in cryptocurrency prices.”
FactSet
Bitcoin BTCUSD,
was down 1.4% in morning trading on Wednesday and is down 12.4% since it closed at a record $ 63,434.45 on April 13, according to data from FactSet. Despite the recent downturn, bitcoin is up 91.6% to date and is up 712.7% in the last 12 months. For comparison: the S&P 500 index SPX,
is up 10.4% this year and is up 51.5% last year.
Last week, BTIG analyst Mark Palmer started reporting on Coinbase with a buy rating and a price target of $ 500, saying he believed the crypto exchange will be the “main beneficiary” of the increased adoption of bitcoin and other digital assets. assets, especially institutional investors.
“We believe [Coinbase] should be seen as the industry leader in a category characterized by rapid and apparently sustainable growth, driven by significant changes in consumer behavior and their adoption of new technology, ”Palmer wrote in a research note.
Also read: Coinbase hangover? This is why bitcoin may be experiencing its steepest slide since February.
See relatedCoinbase CEO Brian Armstrong raised more than $ 290 million in stock sales and Fred Ehrsam raised nearly $ 112 million.
Rosenblatt’s Horgan said he believes it is “reasonable” to believe that the market value of cryptocurrencies will increase approximately fivefold in the coming years to the approximately $ 11 trillion market value of gold. He said Coinbase’s current 11% share of the crypto market is leaving it in “pole position” to capitalize on that growth.
“Crypto has reached a turning point on its path to legitimacy, and we see this as a long-term disruptive trend in its infancy,” Horgan wrote in a note to clients. “Net / net, we are buyers of [Coinbase’s stock] as a category leader for long-term and pure-play cryptocurrency stocks. “