UPDATE: Loop Capital Starts Coinbase Global Inc. (COIN) at Buy, 'Lots of Runway Before Takeoff'
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Loop Capital analyst Kenneth Hill initiates coverage on Coinbase Global Inc. (NASDAQ: COIN) with a Buy rating and a price target of $394.00.
The analyst comments "Coinbase is many things – at its most basic level it’s a leading crypto exchange, storing over 11% of the cryptocurrency in the world - but at its core it is a customer acquisition story. The company’s success or failure will not be predicated on how much volume it trades next quarter like a traditional exchange, it will be driven by how effectively it is able to add customers and gather assets on its platform over time. That may sound obvious because businesses clearly need customers to survive, but only by acquiring customers and assets in the still early days of crypto adoption will Coinbase be able to evolve from a trading venue to a shaper of the cryptoeconomy... justifying the elevated valuation it commands. The path to success is by no means a foregone conclusion. There are some very sizable risks to manage (growing competition, fee compression, etc.) as well as navigating a volatile crypto backdrop. It will be important to watch the cadence of product development, customer acquisition trends and asset growth... all of which will benefit to the extent Bitcoin remains at healthy levels for the near term. Overall, we believe that Coinbase has one of the most attractive long-term opportunity sets in all our coverage, helping form our Buy rating."
Shares of Coinbase Global Inc. closed at $328.28 yesterday.
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