Bank of America has initiated coverage of Coinbase Global. The bank has identified several factors that could boost Coinbase’s revenue. Regarding the crypto exchange’s plan to become “the Amazon of crypto assets,” Bank of America says it is “still in very early stages of development.”
Bank of America Awaits Concrete Signs of Progress Against Coinbase’s Long-Term Vision.
Bank of America (Bofa) initiated coverage of Coinbase Global Inc. (Nasdaq: COIN) Friday. Jason Kupferberg, a senior equity research analyst at Bank of America Merrill Lynch, started Coinbase with a “neutral” rating and a $273 price target.
While the analyst sees Coinbase as the “leading provider of crypto infrastructure,” he cautioned that its stock, which is trading at 18.3 times sales, may have limited near-term upside. He described:
COIN aims to become the Amazon of crypto assets, though in our view COIN’s model is still in very early stages of development, and we await more concrete signs of progress against COIN’s long-term vision.
Coinbase CEO Brian Armstrong said last week during the company’s Q2 2021 earnings call: “We want to be the Amazon of assets, list every asset out there in crypto that’s legal. There are thousands of them today. There are eventually going to be millions of them. This is all under the theme of embracing decentralization.”
The Bank of America analyst is looking for Coinbase to diversify away from crypto trading fees, which currently account for 95% of the company’s revenue. Noting that services such as staking and lending are starting to gain traction for the exchange, he pointed out that subscriptions and services represent significant cross-selling opportunities that could boost Coinbase’s average revenue per user.
Several investment banks now cover Coinbase Global. Wedbush Securities began covering Coinbase in May with a stock price target of $275. The company raised the exchange’s price target from $275 to $300 last week with an “outperform” rating for the stock.
In July, Mizuho cut the price target for Coinbase from $225 to $210 while Oppenheimer raised the price target for COIN from $434 to $444. Raymond James began covering Coinbase in June with an “outperform” rating.
JPMorgan and Goldman Sachs initiated coverage of Coinbase in May. Goldman began with a “buy” rating and a price target of $306 for COIN. JPMorgan started with an “overweight” rating largely due to the company’s key position in the growing cryptocurrency space. The firm set the target price for Coinbase at $371.
Do you think Coinbase will soon become the Amazon of crypto assets? Let us know in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Financial institution of America has initiated protection of Coinbase International. The financial institution has recognized a number of elements that would increase Coinbase’s income. Relating to the crypto change’s plan to change into “the Amazon of crypto belongings,” Financial institution of America says it’s “nonetheless in very early phases of improvement.”
Financial institution of America Awaits Concrete Indicators of Progress Towards Coinbase’s Lengthy-Time period Imaginative and prescient.
Financial institution of America (Bofa) initiated protection of Coinbase International Inc. (Nasdaq: COIN) Friday. Jason Kupferberg, a senior fairness analysis analyst at Financial institution of America Merrill Lynch, began Coinbase with a “impartial” ranking and a $273 worth goal.
Whereas the analyst sees Coinbase because the “main supplier of crypto infrastructure,” he cautioned that its inventory, which is buying and selling at 18.3 occasions gross sales, could have restricted near-term upside. He described:
COIN goals to change into the Amazon of crypto belongings, although in our view COIN’s mannequin remains to be in very early phases of improvement, and we await extra concrete indicators of progress in opposition to COIN’s long-term imaginative and prescient.
Coinbase CEO Brian Armstrong mentioned final week in the course of the firm’s Q2 2021 earnings name: “We need to be the Amazon of belongings, checklist each asset on the market in crypto that’s authorized. There are millions of them right now. There are ultimately going to be tens of millions of them. That is all below the theme of embracing decentralization.”
The Financial institution of America analyst is searching for Coinbase to diversify away from crypto buying and selling charges, which at present account for 95% of the corporate’s income. Noting that providers corresponding to staking and lending are beginning to achieve traction for the change, he identified that subscriptions and providers signify important cross-selling alternatives that would increase Coinbase’s common income per person.
A number of funding banks now cowl Coinbase International. Wedbush Securities started protecting Coinbase in Could with a inventory worth goal of $275. The corporate raised the change’s worth goal from $275 to $300 final week with an “outperform” ranking for the inventory.
In July, Mizuho lower the worth goal for Coinbase from $225 to $210 whereas Oppenheimer raised the worth goal for COIN from $434 to $444. Raymond James started protecting Coinbase in June with an “outperform” ranking.
JPMorgan and Goldman Sachs initiated protection of Coinbase in Could. Goldman started with a “purchase” ranking and a worth goal of $306 for COIN. JPMorgan began with an “obese” ranking largely as a result of firm’s key place within the rising cryptocurrency area. The agency set the goal worth for Coinbase at $371.
Do you suppose Coinbase will quickly change into the Amazon of crypto belongings? Tell us within the feedback part beneath.
Picture Credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This text is for informational functions solely. It isn’t a direct provide or solicitation of a suggestion to purchase or promote, or a suggestion or endorsement of any merchandise, providers, or firms. Bitcoin.com doesn’t present funding, tax, authorized, or accounting recommendation. Neither the corporate nor the writer is accountable, instantly or not directly, for any injury or loss brought on or alleged to be attributable to or in reference to using or reliance on any content material, items or providers talked about on this article.
