Citi Recommends Investing in Coinbase’s Stocks
Multinational investment bank Citi estimates Coinbase shares are worth 30% more than their current price.
In a Citi report on its analysis of Coinbase, analyst Peter Christiansen said the firm’s stock offers investors direct access to growing retail and institutional cryptocurrency adoption.
The report also noted that Coinbase is making ongoing efforts to expand its operations beyond the simple crypto exchange to other areas like NFT or cold wallet storage.
Citi set a bullish target price of $415 for the COIN, substantially higher than Monday’s close of $319.
And Christiansen recommended investing in the company because of its position in the cryptocurrency value chain, as well as its business model based on network technologies and strategies.
He also believes that Coinbase’s competitive advantage is its approach to compliance.
Lisa Ellis, the Senior Equity Analyst at MoffettNathanson, also believes COIN’s share could rise in the near future and even reach $600.
Coinbase went public in April with an initial IPO price of $381, and the day before the retreat, it surged to a peak of $430. COIN hit a monthly high of $326 on Monday this week but has since dropped 4.3% to $312 after the close, according to MarketWatch.