August 17, 2021 11:33 UTC
August 17, 2021 11:33 UTC
Bank of America has launched a report on Coinbase International. The bank knows many factors that can increase Coinbase’s revenue. Regarding the arrangement for the crypto exchange to become the “crypto asset Amazon”, Bank of America stated that it is “still in a very early stage of development.”
Bank of America awaits concrete signs of progress on Coinbase’s long-term vision.
Bank of America (Bofa) launched a report on Coinbase’s international opposition. (NASDAQ: COIN) Friday. Bank of America Merrill Lynch’s senior equity analyst Json Kupferberg started Coinbase with a “neutral” rating and a value target of $273.
Although analysts consider Coinbase to be a “leading provider of crypto infrastructure,” he warned that the commercialization of its stock, which is 18.3 times sales, may limit recent gains. He described:
“The goal of COIN is to become the Amazon of encrypted assets. Although in our opinion, the COIN model is still in a very early stage of development, we expect that COIN’s long-term vision will show many concrete signs of progress.”
Coinbase CEO Brian Armstrong (Brian Armstrong) mentioned on the company’s second quarter 2021 earnings call last week: “We want to be the Amazon in the asset field, listing every asset in the legal cryptocurrency. Now there are thousands of people. Eventually millions. This is usually less than embracing the theme of decentralization.”
The Bank of America analyst is looking for Coinbase to diversify away from crypto transaction fees, which currently account for 95% of the company’s revenue. Noting that services like staking and disposal are gradually attracting the appeal of exchanges, he found that subscriptions and services represent important cross-selling opportunities that can increase the average revenue per user of Coinbase.
Several investment banks currently cover Coinbase Global. Wedbush Securities may begin to cover Coinbase with a stock value target of $275. The company last week raised the exchange’s value target from $275 to $300, and the related rating on the stock was “outperform.”
In July, Mizuho lowered Coinbase’s value target from 225 US dollars to 210 US dollars, while Oppenheimer raised the COIN value target from 434 US dollars to 444 US dollars. Raymond James began covering Coinbase with an “outperform” rating in June.
JPMorgan Chase and Goldman Sachs may start reporting on Coinbase. Goldman Sachs started with a “buy” rating and set the value target of COIN at $306. JPMorgan Chase started with a related “overweight” rating, mainly because the company is in a key position in the growing cryptocurrency field. The company set the target value of Coinbase at $371.