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Coinbase Gets Upgrade: Goldman Sees 28% Upside
5 Jan
Summary
- Goldman Sachs upgraded Coinbase shares to a buy rating.
- The bank raised its 12-month price target to $303 per share.
- Coinbase's subscription and services revenue is growing significantly.
Goldman Sachs has upgraded Coinbase, the cryptocurrency exchange, to a buy rating, signaling increased confidence after a year of underperformance. The bank also raised its 12-month price target for Coinbase shares to $303, indicating a potential 28% increase from its previous valuation.
Analyst James Yaro noted that Coinbase's recent stock decline presents an appealing opportunity for investors. He emphasized the company's robust business fundamentals, including strong revenue growth, market share expansion, and efficient customer acquisition, attributing these strengths to its significant scale and brand recognition.
The upgrade also reflects optimism about Coinbase's expanding subscription and services offerings, which are diversifying its revenue streams. These businesses, projected to grow substantially and become a larger percentage of total revenue, are expected to reduce earnings volatility as the crypto ecosystem evolves beyond simple trading.
