Coinbase’s price target has been raised from $200 to $276, reflecting the growing confidence in the digital asset adoption and the approval of spot bitcoin ETFs. Despite the potential risks associated with the exchange’s ongoing lawsuit with the SEC, analysts at Oppenheimer are optimistic about Coinbase’s prospects in the long run.
According to the research report, Coinbase is well positioned to benefit from the continued adoption of blockchain technology, with an estimated 1Q24 trading volume expected to increase significantly. The approval of spot bitcoin ETFs in January has further fuelled the adoption of digital assets, contributing to the liquidity in the space.
Furthermore, the increasing market cap of USD Coin (USDC), a stablecoin backed by Coinbase, is seen as a positive indicator for Coinbase’s growth. The exchange earns gross interest income on USDC outstanding balances, adding to its revenue streams.
As a result of the company’s improving outlook, Oppenheimer has raised its price target for Coinbase to $276. Despite the stock’s strong performance since January, outperforming the S&P 500 index, there are still potential headwinds to consider. The uncertainty surrounding the approval of a spot ether ETF and the ongoing lawsuit with the SEC could impact Coinbase’s stock in the near term.
However, Oppenheimer remains positive on the long-term adoption of blockchain technology and sees Coinbase as offering unique exposure to the growth of the crypto industry. Investors should stay informed about the developments in the crypto market and the regulatory landscape to make informed decisions about their investments.
