The current macro backdrop has been positive for crypto market cap growth and trading volumes, the report said.
The bank said risks include the exchange’s continued dependence on transaction revenue and the company’s ongoing lawsuit with the SEC.Coinbase shares rose 2.5% in pre-market trading on Friday after Wall Street giant Bank of America upgraded the shares to neutral from underperform. The investment bank raised its Coinbase price target to $217 from $110. The stock was trading around $204 at publication time.
Bank of America said it was upgrading the stock for a number of reasons, including the positive macro backdrop that has helped the cryptocurrency markets and trading volumes, analysts led by Mark McLaughlin wrote. The note also said the exchange's expense discipline and increased diversification should also help its earnings.
However, the analysts noted that there are potential risks that could limit the the stock’s upside, including the exchange’s continued dependence on transaction revenue for profitability and the regulatory overhang linked to thein a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence.
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: DailyFX - 🏆 305. / 63 Read more »