By Shelly Melancon (Switzerland)
Citi began covering the shares of US cryptocurrency exchange Coinbase this week, setting an extraordinarily bullish target price for the company. Citi analyst Peter Christiansen claimed in an analysis study released on Tuesday, Oct. 26, that investors should “purchase crypto’s main store.” Citi has set a bullish price target of $415 on COIN, a considerable rise from the stock’s Monday closing price of $319.
According to the expert, the stock provides investors with “significant exposure to rising retail and corporate acceptance of cryptocurrencies” through its price. When it comes to Coinbase, the worldwide banking behemoth sees tremendous promise in the business. The business also now is working to extend its activities beyond merely a cryptocurrency exchange and into additional areas like non-fiat currencies (NFTs) and cold wallet holding.
Within a few days after the firm’s statement on Oct. 13, it had received more than a million registrations for its NFT platform’s waitlist. According to Christiansen, the firm was suggested because of its “place inside the crypto value stream, its ‘network engineering’ sales model and approach, and the extremely wide potential set… therefore, we feel COIN is investment grade.”
Greater Highs and Higher Lows For The Stock Price
A further competitive edge, according to him, is Coinbase’s forward-thinking attitude to regulatory requirements. “To a certain extent, we believe that increasing restrictions will be beneficial to Coinbase’s competitive edge, particularly when compared to economic models that are based primarily on uncontrolled marketplaces.” Christiansen went on to say that the stock is poised to reach “greater peaks and greater lows” as the popularity of cryptocurrency assets grows.
Also read:Also raising their price target for the shares to $360 is Piper Sandler, a leading American financial institution. Even JPMorgan’s Kenneth Worthington, who raised his price objective on COIN from $372 to $375, isn’t on deck with the bullish sentiment. However, following the company’s recent collaboration with Facebook on the Novi digital wallet, Lisa Ellis, a chief stock strategist at Moffett Nathanson, declared COIN a “must-own investment” that might reach $600 soon.
Coinbase Went Public With An IPO Of $381 In April
Coinbase decided to go public in April with an initial public offering (IPO) price of $381. The cryptocurrency exchange then climbed to a high of $430 on the same day before crashing. According to market research firm MarketWatch, the cryptocurrency exchange has dropped 4.3 percent to a closing price of $312 in after-hours trade after reaching a monthly high of $326 on Monday.
Soon after the company went public, reports surfaced that Coinbase officials and executives had begun selling their shares in the company. In the second quarter, the corporation earned approximately $1.6 billion in revenue, with a substantial amount of that originating from fees that were higher than its competitors. The third-quarter report will be released on November 9. In August, Jim Cramer, head of CNBC’s “Mad Money,” promoted Coinbase shares, advising investors to commit 5 percent of their holdings to cryptocurrency assets.
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