- HC Wainwright analysts launch Coinbase with a ‘buy’ rating.
- Mike Colonnese explained his bullish view in a research note.
- Coinbase’s stock has fallen about 35% in just over a month.
Coinbase Global Inc’s 35% pullback last month was “overkill” and will bounce back soon, says HC Wainwright analyst Mike Colonnese.
Buy Coinbase stock and get a 35% return
On Wednesday, Colonnese recommended that investors buy shares in one of the world’s second largest and best cryptocurrency exchanges. This was because it had gone up to $75, his 35% premium on the current price.
Analysts are bullish on Coinbase stock for one simple reason: the reward currently outweighs the risk.
Coinbase is uniquely positioned to benefit from the large and rapidly growing crypto economy with its trusted brand, easy-to-use products, and focus on compliance and regulation.
Coinbase is present in 100 countries and serves approximately 8.3 million active users. According to Colonnese, this is large enough to increase market share this year.
Why else is he bullish on Coinbase stock?
Coinbase is expected to report its first quarter results next week. consensus That’s a loss of $1.36 per share this quarter compared to $1.98 per share a year ago.
HC Wainwright analysts believe the crypto winter is over and the ensuing increase in trading volumes will be the catalyst for the company’s performance.his research notes Added:
COIN is a scarce asset as it is the only publicly traded crypto-native company in the US with a market cap of over $10 billion. This means that competition for investor capital is very limited.
Earlier this week, Coinbase announced Securities and Exchange Commission After waiting months for responses to its July 2022 petition, Colonnese concluded that future regulatory clarifications would also help boost Coinbase’s inventories.
