Coinbase may be gearing up for a significant breakout, according to a fresh bullish report from Bernstein. Analyst Gautam Chhugani has reiterated his “outperform” rating on the stock while hiking the price target from $310 to $510, signaling a potential 48% upside from Tuesday’s close at $344.82.
As per the reports, in his latest note to clients, Chhugani described Coinbase as “Coinbase is the most misunderstood company in our Crypto coverage universe. Despite multiple growth levers, consensus remains bearish on the largest Crypto universal bank,”
Chhugani added.“It is the only Crypto company in the S&P500, dominates U.S. Crypto trading market, runs the largest stablecoin business amongst exchanges, dominates institutional Crypto, acquired the largest global crypto options exchange and runs the largest and fastest chain on Ethereum forming the tokenization network.”
He also highlighted Coinbase’s strategic acquisitions, including the largest global crypto options exchange, and its leadership in blockchain infrastructure with the fastest chain on Ethereum, which supports its expanding tokenization network.
The report claims that Coinbase has continuously exceeded pessimistic predictions and kept its market share despite heightened competition. In the absence of Coinbase’s complete product line and regulatory compliance, Chhugani thinks future cryptocurrency offerings from conventional brokerages will find it difficult to compete.
The market for cryptocurrency derivatives also contributes significantly to the positive argument. Coinbase is getting ready to launch perpetual futures, extending its presence into a U.S. market that Chhugani characterises as having “massive headroom.” Coinbase now offers Bitcoin and Ethereum futures and is gearing up to launch perpetual futures trading.
According to the analyst, Coinbase may make about $9.5 billion in revenue this year, which would support the revised price objective.
Also Read: Why Did Coinbase Stock Jump Over 12% Today?
