The multinational finance company Citi began to cover Coinbase shares on the US cryptocurrency exchange this week with a very rising price target.
Citi analyst Peter Christiansen told investors that they could “buy a public crypto store,” in a research note released on Tuesday, October 26. Citi COIN offered an upside target price of $ 415, well above Monday’s closing price of $ 319.
The analyst said the shares give investors “direct access to the growing retail and institutional use of cryptocurrencies.”
The multinational banking giant sees the potential in Coinbase as the company makes continuous efforts to expand its business beyond cryptocurrency exchanges and into other areas such as NFT and cold storage wallets.
The company has collected over 1 million requests on the NFT platform’s waiting list in the space of a day or so since the announcement on 13 October. Christiansen recommended the company, “for its position in the cryptocurrency’s value chain, network business model and strategy, there is no doubt about a very large pool of opportunities … Yes, we believe COIN is investable.”
He also sees Coinbase’s “flexible approach to compliance” as a competitive advantage.
“To a certain extent, we believe that increased regulation can have a positive effect on Coinbase’s competitive position, especially with regard to business models that are heavily dependent on unregulated markets.”
Christiansen added that stocks exist to achieve “higher highs and higher lows” when the use of cryptocurrencies increases. The American investment bank Piper Sandler raised the share price to 360 dollars.
Not all analysts associated with JPMorgan’s Kenneth Worthington raised the target price of the coin only marginally to $ 375 from $ 372. However, Lisa Ellis, chief analyst at MoffettNathanson, said COIN is a “must-have” stock that can reach $ 600. in light of her recent partnership with Facebook on the Novi cryptocurrency wallet.
In April, Coinbase was listed at $ 381, peaking at $ 430 the day before the withdrawal. The price of the coin peaked at a monthly high of $ 326 on Monday this week, but fell 4.3%, according to MarketWatch, as after-hours trading reached $ 312.
Related topics: A major technology giant reportedly owns shares in Coinbase.
Immediately after the listing, there were reports that Coinbase insiders and executives began dumping shares. The company generated nearly $ 1.6 billion in profits in the second quarter, most of which came from transaction fees that exceeded the industry average. The third quarterly report will be released on November 9.
In August, CNBC’s Mad Money host Jim Cramer recommended Coinbase shares, inviting investors to allocate 5% of their portfolios to cryptocurrencies.
