Coinbase (ticker: COIN) shares experienced a remarkable surge of over 23% last week, fueled by a series of bullish developments.
Analysts are now doubling down on their optimistic outlook, suggesting this rally may just be in its nascent stages.
Mark Palmer, an analyst at Benchmark, reiterated his “buy” rating on Coinbase, elevating his price target from $301 to a significant $421. Palmer described recent events surrounding the crypto exchange as “transformational.”
He highlighted a rapid succession of regulatory victories and strategic product introductions, which he believes will substantially expand Coinbase’s revenue streams and warrant a higher earnings multiple for the company.
This bullish stance from Benchmark follows similar optimism from Cantor Fitzgerald. Just last week, Cantor Fitzgerald analysts reaffirmed their “overweight” rating on Coinbase’s stock, simultaneously raising their 12-month price target from $253 to $292. They cited Coinbase’s evolving role, transitioning “from being a cyclical cryptocurrency exchange to being a mission-critical infrastructure layer of crypto.”
A pivotal catalyst identified by Palmer is the recent bipartisan passage of the GENIUS Act in the U.S. Senate. This proposed legislation aims to establish a clear legal framework for stablecoins. Given Coinbase’s enduring partnership with Circle, the issuer of the USDC stablecoin, the exchange is poised for direct and substantial benefits should this bill successfully navigate the House and be signed into law. This legislative milestone is anticipated to potentially occur as early as August. The cumulative effect of these positive regulatory and operational advancements points towards a robust future for Coinbase in the burgeoning digital asset landscape.
Source
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/coinbase-stock-soars-analysts-see-transformational-growth-ahead/