The Coinbase Global Cover was launched by Bank of America. The bank identified several factors that could boost Coinbase’s revenue. Bank of America states that the crypto exchange is still at an early stage of development and plans to be “the Amazon of cryptocurrency assets.”
Bank of America is waiting for concrete signs of progress regarding Coinbase’s long-term vision.
Bank of America (Bofa), unveiled the Coinbase Global Inc. cover (Nasdaq, COIN), on Friday. Jason Kupferberg is a senior equity research analyst at Bank of America Merrill Lynch. He launched Coinbase with an “neutral” rating, and a price target of $ 27,3.
Although Coinbase is regarded as the “leading provider” of crypto infrastructure, the analyst warned that its stock, trading at 18.3x sales, may not have the same upside potential in the short-term. It Please describe:
COIN hopes to be the Amazon of crypto assets. However, COIN’s model is still very early in development. We expect more concrete signs of COIN’s long-term vision. CORNER.
Coinbase CEO Brian Armstrong said last week during the company’s second quarter 2021 earnings call: “We want to be the Amazon of assets, listing all crypto assets that are legal. There are thousands of them. There will be millions. All this is related to decentralization.
An analyst at Bank of America is looking to diversify away crypto trading fees which currently account for 95% of Coinbase’s revenue. He pointed out that services such as staking and lending are beginning to gain traction at the exchange. Subscriptions and services offer important cross-selling opportunities, which could increase Coinbase’s average user revenue.
Coinbase Global is covered by several investment banks. Wedbush Securities began covering Coinbase in May, with a $ 275 share price target. The stock price target was increased from $275 to $ 300 last Wednesday by Wedbush Securities with an “outperform” rating.
Mizuho reduced the price target Coinbase’s from $ 265 to $ 210 in July. Oppenheimer increased the COIN price target from $ 434 to $444 in July. Raymond James started hedging Coinbase in June with an “outperformance” rating.
JPMorgan launched the Coinbase cover in May with Goldman Sachs and JPMorgan. Goldman started off with a “buy” rating and a price target of $ 306 for COIN. JPMorgan began with an “overweight” rating, largely due to JPMorgan’s position in the rapidly growing cryptocurrency space. Coinbase has set its target price at $ 371.
Are you convinced that Coinbase will soon be the Amazon of crypto assets. Comment below to let us know your thoughts.
Credits for the image: Shutterstock. Pixabay. Wiki Commons
WarningThis article is only for informational purposes. This article is not intended to be a solicitation or offer to buy or sell any product, service, or business. Bitcoin.comDoes not offer investment, tax, legal, or accounting advice. The author and neither the company are responsible for any loss or damage arising from or in connection with any content, good/service or information in this article.