Why This Coinbase Analyst Is Bullish

Coinbase Global Inc’s (NASDAQ: COIN) stock offers investors “direct exposure to increased retail and institutional adoption” of digital currencies, according to Citi.

The Coinbase Global Analyst: Peter Christiansen initiated coverage of Coinbase Global with a Buy rating and a price target of $415.

The Coinbase Global Thesis: The company has significant exposure to cryptocurrency prices. Coinbase Global is a “crypto-economy facilitator” and the stock could make “higher highs and lower lows” relative to crypto volatility as the adoption of digital currencies increases, Christiansen said in the initiation note.

“We also see additional opportunities for the stock to benefit as the company potentially expands its offerings beyond transaction facilitation (cold wallet storage, Dapps and/or APIs to outside DeFi protocols, staking, pre-paid debit cards, NFTs, etc.),” the analyst wrote.

“We also think Coinbase’s “lean forward” approach towards regulatory compliance should be appreciated as a potential competitive advantage longer-term,” he added.

COIN Price Action: Shares of Coinbase Global were down 1.22% to $321.56 at the time of publication Tuesday.

Photo: Courtesy Coinbase