Is Coinbase worth buying now?
Coinbase shares continue to perform strongly, as the stock concluded 7% higher following a new price target upgrade.
- Coinbase Global Inc (All Sessions) (NASDAQ: COIN) shares ended 7% higher on Wednesday (08 July 2021)
- Oppenheimer’s research team raised their price target on the crypto exchange to US$444 from US$434 previously
- The stock has rallied 14% in the last one month, ahead of its anticipated Q2 results
- Mizuho analysts believe COIN’s Q2 earnings release will be accompanied by reduced third quarter estimates
- Interested to trade Coinbase shares? Open an account with us today to get started.
Coinbase stock price: What’s the latest?
Coinbase shares closed 7% higher on Wednesday, following a price target upgrade from Oppenheimer’s equity research team.
Analyst Owen Lau raised his firm’s price target on the cryptocurrency exchange to US$444 from US$434 previously, while maintaining an ‘outperform’ call.
Lau opined that COIN is likely to repeat its strong performance from the first quarter in its Q2 report, which is scheduled to be released on 12 August.
‘Based on our tracker and analysis, we estimate (Coinbase) will post another record quarter in trading volume, revenue, verified users and MTU (monthly transacting users),’ he wrote in a client note on 07 July.
He added that the company’s management will likely continue to increase contributions from recurring revenue and altcoins such as Dogecoin and Polkadot, as it seeks to lower its dependence on Bitcoin for revenue.
‘We continue to see a sharp dislocation between (Coinbase's) fundamentals and its valuation and believe the current price offers an attractive entry point for long-term investors,’ Lau wrote.
Coinbase’s Q2 results could come with ‘killjoy’
On the other hand, Mizuho analyst Dan Dolev believes that Coinbase’s Q2 results might come with a ‘killjoy’ in the form of lower Q3 consensus estimates.
That’s mainly because of June 2021’s ‘subdued’ cryptocurrency volatility, which will the platform’s Q3 results.
Nevertheless, he expects Coinbase’s Q2 revenue to beat Wall Street estimates, thanks to ‘outsized’ trading volumes in April and May 2021.
Dolev reiterated a ‘neutral’ call and price target of US$225 on the stock.
Coinbase shares are up 14.2% in the last one month. The latest analyst sentiments published by MarketBeat show a consensus rating of ‘buy’ and average price target of US$379.
The price target equates to a 50.4% upside potential from the stock’s last traded price of US$252 on Wednesday.
How to trade Coinbase shares
You can take a position on Coinbase for just a small initial deposit with spread bets or Contracts for Differences (CFDs).
Spread bets are completely tax-free, while CFDs are free from stamp duty. CFDs also give you direct market access (DMA), providing increased transparency useful for more advanced traders.
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