Coinbase News: Oppenheimer analyst Owen Lau says it’s time to buy shares of leading crypto exchange Coinbase. Lau feels that Coinbase stocks do not deserve to be dragged into the recent cryptocurrency winter.
After publishing a bullish research note about the company, Lau said on Yahoo Finance Live:
“We are of the opinion that Coinbase should not trade following the same steps as Bitcoin because the price of Bitcoin can be very volatile, but also provides higher trading volume due to this volatility. Like all traditional exchanges, we still think it’s a market misconception that people think Coinbase should trade with Bitcoin in forward-looking scenarios.”
How does Lau evaluate?
Lau; It reiterated its Outstanding Performance rating on Coinbase, with a price target of $440 for the 12-18 month period. In fact, Lau wants Coinbase shares to nearly double in the span of 18 months.
According to Lau, the key parties are:
– Higher-than-expected volume in the second quarter
– Probably Wall Street analysts will have to raise their 2021 forecasts for volumes in light of a strong second quarter.
– Worries about Coinbase’s falling fees are exaggerated and will likely subside
How did the fall of Bitcoin affect Coinbase stocks?
It is thought that Coinbase shares are dragged into the decline in crypto prices, which has been going on for months. Bitcoin has dropped by nearly 50% from record highs of over $63,000 in mid-April. With fears of repressive regulations in the US and China, the massive sell-off spread to other top cryptos like Dogecoin and Ethereum.
Coinbase shares, on the other hand, have fallen 30% in the past three months. Coinbase shares are trading at $234.88, well below the $328.88 level set by the Nasdaq in mid-April.
Although Coinbase CFO Alesia Haas reiterated the strong start of the second quarter in an interview with Yahoo Finance Live, a setback was observed.
Lau also included the following statements in his notes:
“Looking ahead, we believe management will continue to grow strategically, with contributions from recurring revenue (e.g. Coinbase Earnings campaign, betting and M&A) and altcoins. Coinbase noted that 40% of first-quarter trading volume came from altcoins, significantly lower than their peers (85% for Voyager, for example). Coinbase; Dogecoin should gradually reduce its dependence on Bitcoin after adding Polkadot and others. We may see a sharp divergence from Coinbase’s fundamentals and values, and I believe its current price could be an attractive entry point for long-term investors.”