Oppenheimer, a New York-based financial firm, has revised Coinbase’s share price target to $276, marking a notable increase from the previous target of $200, while maintaining its buy rating.
The new price target of $276 represents a roughly 10% surge from Wednesday’s closing share price of Coinbase, which stood at $251.58.
Owen Lau, Executive Director at Oppenheimer, highlighted the ongoing adoption of digital assets, particularly following the approval of spot bitcoin ETFs in January. Lau projected a significant increase in Coinbase’s 1Q24 trading volume, estimating a 95% quarter-on-quarter and 107% year-on-year rise to $300 billion.
Additionally, Lau pointed out the growing liquidity in the space, with USDC’s market capitalization witnessing a 12% uptick between the first quarter of 2024 and the last quarter of 2023.
According to Oppenheimer, the sustained adoption of digital assets and blockchain technology positions Coinbase as a key beneficiary in the cryptocurrency sector over the long term.
Lau emphasized that the upward revision of the price target for Coinbase shares reflects the company’s improved fundamentals and higher trading revenue. Factors such as strong inflows into spot bitcoin ETFs, the halving, and increased retail participation contribute to this growth. However, Lau noted that Coinbase’s Base Layer 2 wasn’t a significant revenue driver factored into the increased target price for the stock.
In pre-market trading on Thursday, Coinbase shares surged by 3.29% to $259.85 as of 8:56 a.m. ET. Since the beginning of the year, the cryptocurrency exchange’s share price has climbed more than 44%.
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Source: https://cryptocurrencynews.com/oppenheimer-boosts-coinbases-share-price-target-to-276/
