Oppenheimer raises Coinbase share price target to $276
Quick Take
- Oppenheimer has increased Coinbase’s share price target to $276.
- This is up from a previous target of $200.
New York-based financial firm Oppenheimer increased Coinbase's share price target to $276, up from a previous target of $200, while reiterating its buy rating.
The increased price target to $276 from Oppenheimer is around 10% higher than Wednesday's closing share price of Coinbase, which was $251.58.
'The adoption of digital assets continued after the approval of spot bitcoin ETFs in January," said Oppenheimer Executive Director Owen Lau in a note. "We estimate that COIN's 1Q24 trading volume would be up 95% quarter-on-quarter, and 107% year-on-year to $300 billion.
Lau added that liquidity in the space has continued to grow, with USDC's market cap increasing 12% between the first quarter of 2024 and the last quarter of 2023.
RELATED INDICES
According to Oppenheimer, the continued adoption of digital assets and blockchain technology can help Coinbase remain a key beneficiary in the cryptocurrency sector over the long-term.
Lau told The Block that the latest price target increase for Coinbase shares comes as the company is experiencing better fundamentals and higher trading revenue. "This is due to the strong inflows into spot bitcoin ETFs, and the halving also helps drive more interest, plus retail participation has also increased," he added. However, he said that Coinbase's Base Layer 2 wasn't a significant revenue driver taken into account when revising to an increased target price for the stock.
In pre-market trading on Thursday, Coinbase shares increased 3.29% to $259.85 at 8:56 a.m. ET. The cryptocurrency exchange's share price has risen by more than 44% since the beginning of the year.
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