Since the beginning of this year, Coinbase's stock price has skyrocketed, and the possibility of this trend continuing has prompted Citigroup to raise the rating of the stock.
Since the beginning of this year, the stock price has surged by 171.5%, and this week it has once again topped the market cap list of US stocks. Although the stock experienced a significant pullback on Thursday, Bank of America believes that it still represents an attractive investment opportunity. Any dip in Nvidia's stock should be viewed as a chance to buy more.$Coinbase (COIN.US)$The significant rise in the stock price and the possibility of this trend continuing have led Citigroup to upgrade the rating of the stock.
In a report on Tuesday, Citigroup raised its rating on the cryptocurrency exchange platform from neutral to buy, as analyst Peter Christiansen said the possibility of a friendlier regulatory environment for the digital asset industry (particularly Coinbase) had changed his views on the company.
Christiansen wrote that changes in the US election and the Supreme Court's overturning of a legal precedent in the 'Chevron v. Natural Resources Defense Council' case have changed his views on Coinbase's regulatory risk. 'We speculate that the upward opportunity brought by the more favorable regulatory environment is too great to be ignored.'
Since the beginning of this year, Coinbase's stock price has risen by 48% and its market cap has increased by more than 21 billion USD. With the rise of Bitcoin, the stock prices of Coinbase and other crypto-related companies have generally risen.
Last year, the US Securities and Exchange Commission sued Coinbase, accusing it of violating securities rules. Christiansen believes that the Supreme Court's recent overturning of the 'Chevron deference principle', which has a 40-year history, gives federal regulators greater flexibility to interpret unclear laws, which may provide greater defense flexibility for crypto trading platforms.
In addition, the analyst said that the upcoming US election results are turning towards a more favorable direction for the crypto industry. He wrote that during Biden's tenure, 'many people have concluded that the possibility of supporting cryptocurrency legislation under another government leadership will be better', and pointed out that former President Trump is expected to speak at the upcoming Bitcoin conference.
Citigroup's rating upgrade pushed Wall Street analysts' consensus rating of the stock to the most positive level in about two years. At the same time, according to analysts' target price, the stock has a potential downside of 1.5% in the next 12 months.
By comparison, Christiansen's new target price of $345 suggests he believes the stock may rise by about a third.
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