Coinbase Global may have disappointed a few with its Nasdaq debut on Wednesday, but big gains are ahead, says a Wall Street brokerage that announced a bullish $500 share price target.
Analysts at BTIG on Thursday initiated coverage on the cryptocurrency exchange with a buy rating. The “gold standard among digital asset exchanges,” Coinbase is set for “sustained rapid growth” as the industry’s ecosystem expands and increasing institutional adoption provides a tailwind, Mark Palmer and Andrew Harte told clients in a note.
Coinbase’s listing announcement in late January is just one factor that has helped fuel enthusiasm for the crypto space this year, with Bitcoin surging to new records above $60,000 recently and up 117% so far in 2021.
The institutional world has also been climbing aboard, with financial services company Visa last month announcing plans to settle transactions in a “stablecoin,” USD Coin (USDC), while electric-car maker Tesla and digital payments companies PayPal and Square all offer transaction options in Bitcoin or other cryptos.
Share of Coinbase rose 2% to $336.60 in early trading on Thursday. The stock began trading on Wednesday at $381, up from a $250 reference price, climbing all the way to $429.54 before ending at $328.28. While some would have liked to see Coinbase hang onto those highs, the day still delivered a 32% gain, meaning it lived up to the hype. At its closing price, Coinbase was valued at $85.8 billion.
BTIG analysts base that $500 price target on 16 times the company’s full-year 2024 net revenues of $8.2 billion, following its initial public offering.
“We believe COIN, the most popular consumer-facing cryptocurrency exchange in the U.S., is positioned to be a primary beneficiary of the increased adoption of Bitcoin and other digital assets as it continues to scale in the U.S. and internationally,” say the analysts.
Edit: I just went green. Hope it stays there until I sell at $500.