Atlantic Equities on Tuesday upgraded Coinbase Global (NASDAQ:COIN) to Overweight from Neutral as the exchange focuses on sustainable profitability and has returned to market share gains for its assets under custody.
Shares of Coinbase (COIN) rose 4.2% before the bell.
“COIN’s Q1 results confirmed management’s focus on returning the business to sustainable profitability,” said analyst Simon Clinch. “While risks remain in the form of a weak volume backdrop, recession, regulation, and market prices, we believe COIN’s recent actions allow investors to look through towards the longer-term opportunity.”
Clinch said Coinbase (COIN) is regaining custody asset share and is leveraging its trust credentials to exert pricing power, which should build resilience in its model.
Price target was maintained at $70, implying 23% potential upside to its last close.
Clinch noted that every 10% move in cryptocurrency market cap impacts the PT by ~7%-8%, making Coinbase (COIN) the best way to express a view on crypto prices.
Atlantic’s stance contrasts Hold ratings from SA Quant Ratings as well as Wall Street analysts.