Coinbase Shares Have Potential for Almost 30% Upside, Analyst Says

Coinbase shares may reach $300, representing an almost 30% upside from their current price, according to a new research report from JMP Securities, which rates the crypto exchange at market outperform.

“With the company just scratching the surface of its long-term potential, in what we view as a rapidly growing and evolving addressable market, we see a compelling value proposition in COIN shares,” JMP analyst Devin Ryan wrote in a note.

Coinbase has a competitive advantage as a “first mover” in the crypto industry, and even with 68 million users, the company has reached only a small portion of its long-term addressable market, according to the report.

Ryan wrote:

Earlier this month, Piper Sandler analyst Richard Repetto defended Coinbase after a sell-off in the shares following news that it had received a Wells notice from the U.S. Securities and Exchange Commission (SEC) concerning a potential lending product that was subsequently scrapped.

Coinbase shares have fallen about 7% since the exchange’s direct listing in April.

Read more: Coinbase’s SEC Kerfuffle Is Dragging Down COIN’s Price: Piper Sandler Analyst