Oppenheimer, a New York-based monetary agency, has revised Coinbase’s share worth goal to $276, marking a notable enhance from the earlier goal of $200, whereas sustaining its purchase score.
The new worth goal of $276 represents a roughly 10% surge from Wednesday’s closing share worth of Coinbase, which stood at $251.58.
Owen Lau, Executive Director at Oppenheimer, highlighted the continued adoption of digital belongings, significantly following the approval of spot bitcoin ETFs in January. Lau projected a major enhance in Coinbase’s 1Q24 buying and selling quantity, estimating a 95% quarter-on-quarter and 107% year-on-year rise to $300 billion.
Additionally, Lau identified the rising liquidity within the house, with USDC’s market capitalization witnessing a 12% uptick between the primary quarter of 2024 and the final quarter of 2023.
According to Oppenheimer, the sustained adoption of digital belongings and blockchain know-how positions Coinbase as a key beneficiary within the cryptocurrency sector over the long run.
Lau emphasised that the upward revision of the worth goal for Coinbase shares displays the corporate’s improved fundamentals and better buying and selling income. Factors reminiscent of sturdy inflows into spot bitcoin ETFs, the halving, and elevated retail participation contribute to this progress. However, Lau famous that Coinbase’s Base Layer 2 wasn’t a major income driver factored into the elevated goal worth for the inventory.
In pre-market buying and selling on Thursday, Coinbase shares surged by 3.29% to $259.85 as of 8:56 a.m. ET. Since the start of the 12 months, the cryptocurrency alternate’s share worth has climbed greater than 44%.
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