New York-based financial firm Oppenheimer revised its stock price target for Coinbase to $276, a notable increase from its previous target of $200, while maintaining a Buy rating.
The new price target of $276 represents a roughly 10% surge from the Coinbase closing price of $251.58 on Wednesday.
Oppenheimer Managing Director Owen Lau highlighted the continued adoption of digital assets, especially following the approval of the spot Bitcoin ETF in January. Lau predicted Coinbase’s trading volume to increase significantly in the first quarter of 2024, reaching $300 billion, up 95% quarter-over-quarter and 107% year-over-year.
Lau also pointed out that liquidity in the sector is increasing, with USDC’s market capitalization growing 12% between Q1 2024 and Q4 2023.
According to Oppenheimer, the continued adoption of digital assets and blockchain technology has made Coinbase a major beneficiary of the cryptocurrency sector in the long term.
Lau emphasized that the upward price target for Coinbase stock reflects the company’s improving fundamentals and increased trading revenue. Factors such as strong inflows into spot Bitcoin ETFs, the halving, and increased retail participation are contributing to this growth. However, Lau noted that Coinbase’s Base Layer 2 was not a significant return driver that contributed to the stock’s price target increase.
In pre-market trading Thursday, Coinbase shares were up 3.29% to $259.85 as of 8:56 a.m. ET. Cryptocurrency exchange stock prices have risen more than 44% since the beginning of the year.
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