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Cryptocurrency exchange operator Coinbase could skyrocket 36%, analyst says

By on May 24, 2021 0

Although the cryptocurrency market has cooled somewhat in recent days, the stock of Coinbase Global (NASDAQ: PIECE) remains a very convincing purchase. This is the opinion of Goldman Sachs (NYSE: GS) analyst Will Nance. On Monday, he kicked off the investment bank’s cover of Coinbase with a no-hesitation buy recommendation at a price target of $ 306 per share – nearly 36% above the last closing share price. .

For Nance, Coinbase is more than a juicy buy based on the recent and searing popularity of the cryptocurrency. In a research note, he wrote:

While we believe that the core business today offers an attractive growth profile with the potential to generate high levels of profitability, we see significant white space for new initiatives aimed at generating more stable and recurring revenue streams. to supplement basic long-term trading activity.

“If significant parts of the economy can move to blockchain and crypto-native technology over time, Nance added,“ we see a significant opportunity for [Coinbase] to benefit from its status as a critical element of the ecosystem’s financial infrastructure. “

Image source: Getty Images.

Among “infrastructure” services, the prognosticator believes Coinbase can leverage secured loans, cryptocurrency and related investments through its venture capital unit. Nance also believes the company faces significant opportunities in the subscription space.

Coinbase, which is still a fresh stock in the market after its IPO in April, hasn’t been as hot an investment as most of the cryptocurrencies it covers. It has fallen by more than 31% since its debut on the stock market.

Maybe his fortunes are starting to change. On Monday, it edged up 0.4%, although it was overtaken by the S&P 500almost 1% increase.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.