Coinbase Bear Thesis Is ‘Way Overblown,’ Oppenheimer Says

At least one bank analyst says COIN’s sagging stock price is an opportunity to buy the dip.

Apr 18, 2022 at 3:46 p.m. UTC
Updated Apr 18, 2022 at 4:16 p.m. UTC

Michael Bellusci is CoinDesk's crypto payments reporter.

The bearish outlook against Coinbase (COIN) is “way overblown,” Oppenheimer equity analyst Owen Lau told clients in a Monday research note.

  • Bearish points towards Coinbase, the Oppenheimer note says, include the notion that the crypto exchange is facing higher competition and fee compression, that its stock is being overvalued and that a lack of profitability this year is cause for concern.
  • Oppenheimer noted that the longer-term trend of crypto adoption is overlooked by the bears. Meanwhile, on profitability, Lau said Coinbase can reduce its investment plans under a “material slowdown” scenario.
  • The analyst sees pending positives from global expansion, derivatives trading and the launch of Coinbase’s non-fungible token (NFT) segment.
  • Lau maintained an “outperform” recommendation but lowered Oppenheimer’s COIN price target from $377 to $314.
  • Goldman Sachs recently said it sees Coinbase posting total Q1 trading volumes of $302 billion, a sizable decline from $547 billion in Q4.
  • COIN is trading hands at $142 at press time.
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Michael Bellusci is CoinDesk's crypto payments reporter.

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Michael Bellusci is CoinDesk's crypto payments reporter.

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