Coinbase Global has seen a recent surge in stock prices, with one analyst predicting a three-fold increase in value. Bo Pei, an analyst at U.S. Tiger Securities, upgraded Coinbase to Buy from Hold and raised the stock price target to $200. This move makes him the most bullish of more than 20 analysts surveyed by FactSet.
Shares in Coinbase closed at $75.14 on Tuesday. The last time the stock was above $200 was a year ago.
“Crypto has started a new bull run, and so has Coinbase,” Pei said in a Monday note. “We believe crypto price is the main factor to consider when investing in Coinbase. We believe a crypto bull market will drive significant revenue growth.”
Indeed, crypto prices have proved to be a key factor for Coinbase stock, for several reasons. Not only is Coinbase a stock that often moves in step with the price of Bitcoin and other cryptocurrencies, but the company has also seen significant revenue growth as interest in digital currencies has surged.
Also Read
- Bitcoin (BTC) Price Hits $28,400 Amid Banking Crisis
- Whale moves $33 million worth of ETH to Binance in one go: What this means for Ethereum price
- What the UK’s New Crypto Tax Rules Mean for Holders
- De-pegged USDC & DAI offered Exposure to Debtors to save $100 Million – dai crypto
- L’échange crypto Binance va délister les jetons Helium (HNT) et WABI – wabi crypto
The crypto market is on an impressive winning streak, with Bitcoin rallying some 70% this year from the depths of a bear market. The price has hit its highest point since June, when the crypto crash accelerated with a string of bankruptcies. Our thesis assumes that a new crypto bull market has begun and Coinbase’s revenue and profit could recover to its 2021 level, when Coinbase was trading at above $200.
Nevertheless, Pei sees some risks for Coinbase, chief among which is regulation. U.S. lawmakers and regulators have taken a much harder look at crypto companies in the past year. Scrutiny has only accelerated after the collapse of FTX and the meltdowns of two banks that served the digital-asset industry.
The implosions of Silvergate Capital and Signature Bank were initially a setback for crypto prices, but Bitcoin has rallied in response to wider concerns about banks that have griped about crypto companies.