In a research note released on Tuesday, Oct. 26 by Citi analyst Peter Christiansen, he suggested that investors “purchase crypto’s general store.” Citi has set a bullish price objective of $415 for COIN, which is much higher than the $319 closing price on Monday.
The stock provides “direct exposure to rising retail and institutional use of cryptocurrencies,” according to the analyst.
Coinbase’s potential has been recognised by the international banking behemoth, which is working to extend its operations beyond only a crypto exchange and into other sectors such as NFTs and cold wallet storage.
“We believe COIN is investable”
Within a day or so after its Oct. 13 announcement, the business had received over a million applications for its NFT platform waiting list. “We believe COIN is investable”, Christiansen said, citing the company’s “position inside the crypto value chain, a networking-based business model and strategy, and the obviously extremely wide potential set”.
He also sees Coinbase as having a competitive edge because of its “lean-forward attitude to regulatory compliance”.
“To some extent, we believe that growing restrictions might be a benefit for Coinbase’s competitive positioning, particularly when compared to business models that rely on uncontrolled marketplaces.”
As the popularity of crypto assets grows, Christiansen says the stock will hit “greater highs and higher lows.” The stock’s target price has also been lifted to $360 by Piper Sandler, a US investment firm.
Kenneth Worthington of JPMorgan raised his price objective for COIN from $372 to $375, but not everyone is on board. In light of its recent cooperation with Facebook on the Novi crypto wallet, Lisa Ellis, senior equity analyst at Moffett Nathanson, called COIN a “must-own stock” that may reach $600.
Coinbase produced roughly $1.6 billion in profit in Q2
Coinbase went public in April with an initial public offering price of $381. And it soared to a high of $430 the next day before falling down. According to MarketWatch, COIN achieved a monthly high of $326 on Monday this week. But has since declined 4.3% to $312 in after-hours trading.
Coinbase employees and executives began selling the shares shortly after it was available, according to reports. In the second quarter, the corporation produced roughly $1.6 billion in profit. With a substantial amount of it coming from transaction fees that were higher than the industry average. On November 9, the third-quarter report will be obtainable.
CNBC’s “Mad Money” anchor Jim Cramer promoted Coinbase shares in August. Recommending that investors dedicate 5% of their portfolios to crypto assets.