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.
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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