Equity research firm Oppenheimer on Friday upgraded Coinbase Global (NASDAQ: COIN) to an Outperform rating, setting a price target of $160.00.
The report's upbeat stance is partly driven by the ongoing legal scenario involving Coinbase and the SEC.
Oppenheimer analysts believe that Coinbase will likely emerge favorably from this dispute, either by prevailing in the lawsuit or a possible dismissal by the court.
This confidence is grounded in recent legal precedents and an interpretation of the SEC's regulatory reach over cryptocurrencies.
Another significant aspect influencing this outlook is the impact of the introduction of spot Bitcoin ETF. The report suggests that while this development may seem competitive, Coinbase is expected to retain its customer base due to its diverse offerings and absence of an expense ratio.
The company is expected to report positive earnings per share for Q4 2023 or early 2024.
This projection is backed by a substantial increase in trading volume in the first quarter of 2024 compared to the previous quarter, indicating robust growth.
Several catalysts are identified in the report that could further bolster Coinbase's performance.
These include potential market share gains, the company's ability to command premium pricing, the introduction of new crypto ETF products, plans for international expansion, and a solid financial foundation.
Despite the challenges of the recent 'crypto winter,' Coinbase's resilience has been noteworthy.
The company has weathered intense market scrutiny and emerged with a strong management team adept at navigating the complex cryptocurrency landscape, the analysts note.