Investment firm Piper Sandler rates Coinbase as ‘obese’ as it believes the cryptocurrency exchange will lead the fast-growing crypto sector.
Coinbase has a vast potential for growth
Coinbase was listed on the NASDAQ stock exchange a month ago, with the stock pricing soaring to an all-time high of $429 on the first day. However, the stock has underperformed since then, and it is currently trading at $258 per share.
Its rough start hasn’t stopped investment firm Piper Sandler, from giving Coinbase a great rating. According to Piper Sandler analyst Richard Repetto, Coinbase has the potential to lead the fast-growing cryptocurrency space. Repetto said this in a note to clients yesterday, pointing out that the crypto exchange continues to expand its market share, despite the decline in stock price over the past month. “In our view, COIN is the most scaled play in the crypto space, an asset class that has the potential, in our view, to reshape financial services and the technology underpinning it,” he added.
Following this good rating, the analyst set a price target of $335 for Coinbase’s stock. He further explained that “As COIN continues to grow its assets on platform and verified users count through (1) further adoption of crypto by the public and (2) increased market share, we believe Coinbase’s revenue potential has increased in optimal operating environments and raised their operating floor in subdued, non-volatile, markets.”
Coinbase to boost its listing speed
The ratings came a day after Coinbase revealed its forecast range for active users this year while also reporting its Q1 results. In its forecast, Coinbase said it would implement a faster method of listing cryptocurrencies on its platform. The crypto exchange is set to list Dogecoin on its platform in the next 6-8 weeks.
Coinbase said, “Our competitors are supporting certain crypto assets that are experiencing large trading volume and growth in market capitalization that we do not currently support, as well as offering new products and services that we do not offer. We welcome these challenges as they indicate that the market we serve is growing rapidly, but we also have to continue to move quickly to address them, and that inspires us towards action and growth.”
The cryptocurrency exchange could benefit from listing more credible digital currencies as the demand for the coins increase.