CONVERTED ORGANICS (COIN) – Buy and HODL Coinbase stock? Analyst says it is a ‘generation opportunity in crypto’

The highly anticipated Coinbase Global Inc. (NASDAQ: COIN) Marketing took place this week with shares trading at $ 381 and a valuation of $ 100 billion. Analysts are still sharing their thoughts on the long-term outlook for the crypto-currency exchange company.

The Coinbase Analyst: Loop Capital Markets Kenneth Hill started Coinbase Global coverage with a Buy rating and $ 394 price target. The analyst cleverly calls it a buy and hold HODL stock.

The analysts: Hill calls Coinbase more of a customer acquisition game than a volume story of cryptocurrency.

“The success or failure of the company will not determine how much volume it trades next quarter like a traditional stock market, it will be driven by how effectively it can add customers and accumulate assets on its platform over time,” he said. Hill said.

Acquiring customers and assets is important to the company during the early days of adopting cryptocurrencies and can help justify the valuation of Coinbase.

Related Link: 9 Crypto Shares to Play on Coinbase Debut

Potential risks for Coinbase include increasing competition, lower fees and loss of interest in the cryptocurrency market.

Hill thinks the risks are being outweighed by a ‘generation opportunity in crypto’, the huge customer access Coinbase has and its strength in the product.

“The potential to shape the crypto-economy could create a defensible position for decades to come.”

The analyst warns to focus on the long-term success of a stock like Coinbase and not on a short-term outlook, as there will be potential ups and downs.

The $ 394 price target is based on a multiple of 20x on the analyst’s fiscal 2022 and fiscal 2023 revenue projections.

“Overall, we believe Coinbase has one of the most attractive long-term opportunities in all of our coverage, which helps our buy rating.”

COIN PRICE ACTION: Shares of Coinbase rose 5.96% to $ 342 on the market near Friday.

(Photo: Coinbase)