CONVERTED ORGANS (CURRENCY), PayPal Holdings (NASDAQ: PYPL) – Why Coinbase has this long term bullish analyst at the top

Exchange of cryptocurrencies Coinbase Global Inc. (NYSE: COIN) got off to a strong start on Wall Street following the direct listing of its shares last week.

Coinbase Analyst: Rosenblatt Securities analyst Sean Horgan initiated Coinbase hedging with a purchase rating and a target price of $ 450.

Coinbase thesis: Rosenblatt is optimistic for Coinbase in the long run because it will benefit from the growing adoption and acceptance of cryptocurrencies, Horgan said. The company’s short-term view is cautious, as the shares face a negative risk due to a reduction in the crypto price, he added.

Long-term sustainable growth is less uncertain, given the increased risk of institutional adoption and increased subscription revenues, the analyst said.

Similar link: Why Square, PayPal are the best choices in the Fintech space before earnings

Horgan listed the following as reasons for holding Coinbase stock:

• Coinbase’s current 11% share of the cryptocurrency market leaves the stock market in a favorable position to capitalize on long-term growth, the analyst said. The key to long-term success is maintaining market share, investing in infrastructure to accelerate institutional adoption and expanding its subscription and service package to gain new customers and increase average revenue per user, he added.

• The differentiation of the stock market is its security infrastructure and is the deepest economic ditch that the company has, according to Horgan.

• There is a possibility of gradually squeezing charges from the current 55-60 basis points to 35-40 basis points by 2025, the analyst said.

• The analyst sees Coinbase in a unique position to monetize its retail user base through ancillary financial services such as credit / debit card, stock trading and consumer lending, similar to what Square Inc. (NYSE: SQ) Cash App and PayPal Holdings Inc. (NASDAQ: PYPL) Venmo did.

Cryptocurrency, according to Rosenblatt, has reached a turning point on its path to legitimacy, and this is a disruptive long-term trend only in its first half.

“Net / net, we are buyers of COIN as a leader in long-term categories and pure stock of cryptocurrencies,” the company said.

Currency price action: At the last check, Coinbase shares fell 2.77% to $ 311.92 on Wednesday night.

Associated link: Coinbase IPO introduces in the next phase of the cryptocurrency: invested as in 1929

(Photo: Coinbase)