Multinational financial services company Citi this week launched stock coverage in US crypto exchange Coinbase with a very bullish price target.
Citi analyst Peter Christiansen told investors they could “buy the crypto general store,” in a research note released on Tuesday, October 26. Citi gave COIN a bullish price target of $ 415, which is significantly higher than Monday’s closing price of $ 319.
The analyst said the stock offers investors “direct exposure to the increased adoption of cryptocurrencies by retailers and institutions.”
The multinational banking giant sees the potential of Coinbase as the company makes continued efforts to expand its operations beyond a simple crypto exchange and into other areas such as NFTs and cold wallet storage.
The company racked up over a million applications for its NFT platform waitlist approximately a day after its announcement on October 13. Christiansen recommended the company, “for its position in the crypto value chain, a” network-based “business model and strategy, the undeniably very important opportunity set… yes, we think COIN is investable.
He also sees Coinbase’s “Lean Forward approach to regulatory compliance” a competitive advantage.
“To some extent, we believe that increased regulations could be positive for Coinbase’s competitive positioning, particularly against business models that rely primarily on unregulated markets.”
Christiansen added that the stock is set to make “higher ups and downs” as the adoption of crypto assets increases. US investment bank Piper Sandler also raised its price target to $ 360.
Not all analysts agree with Kenneth Worthington of JPMorgan who only slightly increases his price target on COIN to $ 375 from $ 372. However, Lisa Ellis, senior equity analyst at MoffettNathanson, said COIN was a “must-own stock” that could reach $ 600 in light of its recent partnership with Facebook on its crypto wallet Novi.
Coinbase went public in April with an IPO price of $ 381, peaking at $ 430 the day before it was withdrawn. COIN hit a monthly high of $ 326 on Monday this week, but has since fallen 4.3% to an after-hours trading price of $ 312 according to MarketWatch.
Related: Reports suggest consumer tech giant owns shares of Coinbase
Shortly after its listing, reports revealed that insiders and executives at Coinbase had started shedding the stock. The company made about $ 1.6 billion in second-quarter profit, much of which came from its above-industry transaction costs. The third quarter report comes out on November 9.
In August, TUSEN’s ‘Mad Money’ host Jim Cramer recommended Coinbase stock, suggesting investors allocate 5% of their portfolios to crypto assets.