(qlmbusinessnews.com via coindesk.com — Thur, 7th Oct 2021) London, Uk – –
How The Right 5-10 Cryptocurrency Coins
Could Make You A Fortune
https://www.qlmbusinessnews.com/ohy1
There is an 18% potential upside to trading volume and an 11% upside to total revenue estimates, an analyst wrote Tuesday night.
Coinbase (Nasdaq: COIN) is likely to top consensus estimates for trading volume and total revenue for the third quarter due to recent volatility in the price of bitcoin, according to Oppenheimer analyst Owen Lau.
- Lau estimates there is an 18% potential upside to trading volume and an 11% upside to total revenue estimates, citing the exchange’s “substantially” improved trading volume in the second half of the third quarter.
- Coinbase shares had a “rough” September with the stock down 12.2% versus the S&P 500′s 4.8% dip – likely hurt by increased regulatory scrutiny, the retreat of bitcoin, the company’s move to preemptively end its Lend product, its $2 billion debt raise and macro risks associated with Evergrande in China.
- “With all the news driving volatility, trading volume has substantially improved in late August and September,” Lau wrote in a note.
- Lau, who has an outperform rating on the shares and a $444 price target, estimates that Coinbase has $6.5 billion in cash as of the third quarter that can be potentially used for new product development, M&A, diversification and increased balance sheet investment in crypto.
- Late last month, JMP Securities was also bullish on Coinbase shares, putting a $300 price target and market outperform rating on the shares.
- COIN shares are currently trading at around $250.
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.0 seconds of 7 minutes, 10 secondsVolume 90%
Ryan wrote:“While we do not expect COIN shares to move in a straight line, we see material upside that compensates for the inherent risk, and with the stock trading at just 6.0x EV/2023E revenue (compared to a number of other high-growth, leading brand FinTechs trading closer to ~10x and above), we believe the risk/reward in shares is compelling, with additional optionality to the upside as the business model iterates into new areas that the market is currently not even contemplating.”
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.
By Josh Fineman
