End of bearish stance! Goldman Sachs upgrades Coinbase rating to "Neutral" with a target price raised to $282.
Goldman Sachs has upgraded Coinbase's rating from "sell" to "neutral" and raised the target price from $170 to $282. Coinbase has surged nearly 48% year-to-date, attributed by Goldman Sachs to the rise in cryptocurrency prices and the company's enhanced profitability. The daily trading volume of Coinbase has reached its highest level since 2021, mainly driven by retail investors. Goldman Sachs believes that over time, the trend of cryptocurrency prices will outperform the impact brought by the acceleration of retail applications.
Zhitong App learned that after Bitcoin hit a historic high and daily trading volume reached the highest level since 2021, Goldman Sachs suspended its bearish stance on the cryptocurrency exchange Coinbase (COIN.US) in a report last Thursday, upgrading its rating on the stock from "sell" to "neutral" and raising the target price from $170 to $282.
Goldman Sachs analyst Will Nance stated, "Although we still see limited use cases for cryptocurrencies at present, over time, the price trend 'beta' far exceeds the 'alpha' brought by the accelerating retail applications."
Data shows that Coinbase has risen nearly 48% year-to-date. Goldman Sachs attributes Coinbase's rise this year to the significant increase in cryptocurrency prices and the company's commitment to achieving more stable profitability over time.
With Bitcoin hitting new highs, Coinbase's daily trading volume reached the highest level since 2021, ranging from $3 billion to $5 billion. Goldman Sachs analysis indicates that this increase is largely driven by the participation of retail investors. The bank added that Coinbase has benefited from "price increases on the trading platform, maintaining market share, recommitting to stronger cost controls and profitability in all market environments, and the tailwind from higher interest rates."