Coinbase Global Inc. received another downside opinion from a Wall Street analyst on Wednesday, and Rosenblatt Securities analyst Sean Horgan expects the currency exchange to be a “long-term category leader.”
Horgan initiated Coinbase COIN coverage,
with a buy rating and a target share price of $ 450, which is about 46% above current levels.
This maintains it unanimously, as all six analysts surveyed by FactSet have the equivalent of purchase ratings on Coinbase. The average target price is $ 509.00, which is more than double the $ 250 reference price 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 disruptive long-term trend, which is only in its first half.”
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The stock fell 3.7% in trading on Wednesday morning to 5.9% below the close on the first trading day on April 14.
Horgan said he was optimistic about Coinbase’s long-term growth, as it will benefit from the growing adoption and acceptance of cryptocurrencies. He said he was more cautious in the short term, however, because “stocks face a risk of falling from the crypto price pull.”
FactSet
Bitcoin BTCUSD,
fell 1.4 percent in Wednesday morning trading and fell 12.4 percent since closing at a record $ 63,434.45 on April 13, according to FactSet data. Despite the recent withdrawal, Bitcoin has grown by 91.6% so far and has grown by 712.7% in the last 12 months. In comparison, the S&P 500 SPX index,
gained 10.4% this year and amassed 51.5% in the last year.
Last week, BTIG analyst Mark Palmer initiated Coinbase hedging with a $ 500 buy rating and stock price target, saying he believes the cryptocurrency exchange will be the “main beneficiary” of increased adoption of bitcoin and other assets. in particular to be institutional investors.
“We believe [Coinbase] it should be considered the market leader in a category characterized by rapid and seemingly sustainable growth, driven by significant changes in consumer behavior and the adoption of new technologies, ”Palmer wrote in a research note.
Read also: Coinbase hangover? That’s why bitcoin may suffer the steepest slump in February.
See related: Coinbase CEO Brian Armstrong raised over $ 290 million in stock sales, and Fred Ehrsam raised nearly $ 112 million.
Rosenblatt’s Horgan said it was “reasonable” to assume that the market value of cryptocurrencies would increase about five times the market value of gold by about $ 11 trillion in the coming years. He said that Coinbase’s current 11% share of the cryptocurrency market leaves it in a “pole position” to capitalize on this growth.
“Crypto has reached a turning point on its path to legitimacy and we see this as a disruptive long-term trend, which is only in its first half,” Horgan wrote in a note to clients. “Net / net, we are buyers of [Coinbase’s stock] as a long-term category leader and stock of pure cryptocurrencies. ”