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.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.