Coinbase Global, Inc. ,Nasdaq: Coin) has a Buy rating and $75 price target from HC Wainwright analyst Mike Colonies.
starting coverage for coinbase stockColonies noted that at current prices (the stock traded around $56 on Wednesday) COIN appears to have minimal risk.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter today.
The analyst also believes that the crypto winter is over, and that Bitcoin A new bull cycle is likely to occur. This indicates a positive outlook for the broader market. Meanwhile, with Coinbase increasingly becoming more diversified revenue streams and moving away from the volatile transaction fee model, it’s a good metric for the market’s one best crypto stocks,
Coinbase Stock: Analyst Sees 35% Discount to Current Prices
coinbase The largest US-based cryptocurrency exchange. In 2022, the platform processed $830 billion worth of crypto trading volume across its retail and institutional businesses.
The company held over $80 billion in client assets at the end of 2022, accounting for 10% of the global crypto market cap. With 110 million verified customers and 8.3 million active users in over 100 countries, Coinbase is the second largest crypto exchange In this world.
HC Wainwright says it views COIN stock “as a rare asset”. Furthermore, Coinbase’s dominance as the only publicly listed US-based crypto company with more than $10 billion in market cap means it has an edge over rivals when it comes to attracting investor capital.
Therefore, even though COIN is down 85% from its all-time high in November 2021 – compared to the Nasdaq’s 24% decline, analysts see current price levels as a great entry point. At $55 per share, COIN offers an opportunity to buy at a 35% discount to historical levels.
Coin: HC Wainwright Rewards Exceed Risks
Given the company’s valuation, the $75 price target implies a 5.5 x EV/revenue multiple of Coinbase’s net revenue for 2023, which HC Wainwright estimates at $2.89 billion. While this is in line with the crypto company’s historical average, Colonies says the multiple could be higher, given a Wells notice the company recently received from the US Securities and Exchange Commission (SEC).
On potential market catalysts, the consensus points to a possible continuation of crypto’s uptrend in 2023, with bitcoin’s next halving expected in April or May 2024 and greater regulatory clarity in the US.
When it comes to risks, reduced revenue, a new crypto reform, an uncertain regulatory environment, and excessive competition could derail COIN.
Advertisement
Copy expert traders with ease eToro, Invest in stocks like Tesla and Apple. Trade ETFs like the FTSE 100 and S&P 500 instantly. Sign-up in minutes.
10/10
81% of retail CFD accounts lose money