Coinbase Global Inc. received another bullish endorsement on Tuesday from a Wall Street analyst, with Rosenblatt Securities analyst Sean Horgan expecting cryptocurrency to be a “long-term category leader.”
Horgan started Coinbase COIN coverage,
with a purchase rating and a target price of $ 450, which is approximately 46% above current levels.
This keeps it unanimous, as the six analysts surveyed by FactSet have the equivalent of purchase scores on Coinbase. The average price target is $ 509.00, more than double the $ 250 reference price set when the stock market went public last week.
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“Crypto has reached a turning point on its path to legitimacy and we see it as a long-term disruptive trend that is only in its infancy.”
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Shares fell 3.7% on Wednesday on the morning price, to 5.9% below the spot where they closed the first trading day on April 14th.
Horgan said it was bullish on Coinbase’s long-term uptrend as it will benefit from the growing adoption and acceptance of cryptocurrencies. However, he said he was more cautious in the short term as “the stock faces a downside risk due to the reduction in the price of cryptography.”
FactSet
Bitcoin BTCUSD,
it fell 1.4% in trading on Wednesday morning, and has lost 12.4% since closing at a record $ 63,434.45 on April 13, according to FactSet data. Despite the recent recession, bitcoin has still risen 91.6% to date and has risen 712.7% over the past 12 months. In comparison, the S&P 500 SPX index,
has gained 10.4% this year and increased 51.5% over the past year.
Last week, BTIG analyst Mark Palmer began Coinbase coverage with a purchase valuation and a $ 500 target price, saying he believed the cryptocurrency exchange would be the “main beneficiary” of the increase. of the adoption of bitcoins and other digital assets, especially 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 behaviors and their adoption of new technology, ”Palmer wrote in a research note.
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Horgan, of Rosenblatt, said he believes it is “reasonable” to assume the potential that the market value of cryptocurrencies will increase about five times to the approximate $ 11 trillion value of gold over the next few years. He said Coinbase’s current 11% share of the cryptocurrency market leaves it in the “pole position” to capitalize on that growth.
“Crypto has reached a turning point on its path to legitimacy and we see it as a long-term disruptive trend that is only in its infancy,” Horgan wrote in a note to clients. “Net / net, we are buyers of [Coinbase’s stock] as a leader in the long-term category and shares of cryptocurrency in pure play. “