Investment bank JPMorgan initiated coverage of Nasdaq-listed Coinbase’s (COIN) at “Overweight” Tuesday, claiming the stock will claw back losses as it benefits from the growth of the cryptocurrency market, according to a CNBC report.
- JPMorgan analyst Kenneth Worthington set a price target of $371 per share for Coinbase due to the cryptocurrency exchange’s commanding position in the market.
- “We see the crypto markets as durable and growing, and expect Coinbase has the opportunity to influence and benefit from this market growth as it innovates,” said the analyst in a note.
- The analyst added that “organic and inorganic growth opportunities leveraging Coinbase’s position as a large and trusted exchange with success contingent on hiring the talent needed to develop and acquire ‘the best’ in crypto.”
- Worthington said he believes Coinbase has the potential to grow into something that resembles a more traditional financial institution, but for crypto.
- “We also see Coinbase expanding into areas where traditional brokers have better monetized their business, but we expect Coinbase to proceed ‘crypto-style.’ Here we see the opportunity for Coinbase to grow crypto-cash [management], derivatives, lending, and advice,” said Worthington.
- At the time of publication Coinbase shares were trading up 6.5% at $240.10. On April 14, Coinbase’s shares started trading on the Nasdaq at $381.
Read more: Oppenheimer Rates Coinbase Stock as ‘Outperform,’ Sets Price Target of $434
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