Coinbase Global Inc. received another positive recommendation from an analyst on Wall Street on Wednesday, with Sean Horgan, an analyst at Rosenblatt Securities, expecting the exchange of cryptocurrencies to be a ‘long-term category leader’.
Horgan begins coverage of Coinbase COIN,
with a buy rating and a share price of $ 450, which is about 46% above current levels.
That keeps it unanimous, because all six analysts surveyed by FactSet have the equivalent of buy ratings on Coinbase. The average price target is $ 509.00, which is more than double the $ 250 reference price set when the stock was announced last week.
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“Crypto has reached a turning point based on legitimacy, and we see it as a long-term disruptive trend that is only in the early turn.”
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The stock fell 3.7% in the morning trading on Wednesday to 5.9% below the stock market where it closed on the first day of trading on 14 April.
Horgan said he was in the long run to the benefit of Coinbase as it would benefit from the growing acceptance and acceptance of cryptocurrencies. He said he was more cautious in the short term because the stock has a negative risk due to the reduction in the price of crypto. ‘
Fact sheet
Bitcoin BTCUSD,
was 1.4% lower in morning trading on Wednesday and has risen 12.4% according to FactSet data since rising to a record $ 63,434.45 on April 13th. Despite the recent downturn, bitcoin has continued to climb 91.6% so far, rising 712.7% over the past 12 months. For comparison, the S&P 500 index SPX,
increased 10.4% this year and 51.5% last year.
Last week, BTIG analyst Mark Palmer began covering Coinbase with a buy-in and $ 500 share price, saying he believes the crypto exchange will be the ‘primary beneficiary’ of the growing acceptance of bitcoin and other digital assets, especially institutional investors.
“We believe [Coinbase] should be seen as 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.
Also read: Coinbase babelas? This is why bitcoin is possibly experiencing the strongest 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 accept the potential that the market value of cryptocurrency will increase about fivefold to the approximately $ 11 billion market value of gold over the next year. He said Coinbase’s current 11% share of the crypto market leaves him in ‘pole position’ to capitalize on the growth.
“Crypto has reached a turning point in terms of legitimacy, and we see it as a long-term disruptive trend that is only in the early turn,” Horgan wrote in a note to clients. “Net / net, we are buyers of [Coinbase’s stock] as a long-term category leader and pure-play cryptocurrency stock. ”