On Wednesday, April 14, Coinbase (COIN) made a stellar debut on Wall Street closing at $328 per share and drawing valuations of $83 billion at the time of closing on Nasdaq. This is a strong 30% gain on a listing day.
However, the COIN share’s listing price was a massive $381 but a choppy trading session on the market played a bit of a spoilt sport in the game. However, analyst Lisa Ellis of MoffettNathanson thinks there’s still a lot of streams left in the COIN stock as it can surge all the way to $600.
Ellis gave this COIN stock prediction during her interview with Yahoo Finance. She calls it a “must-own” for any long-term growth investor.
“We are positive on the outlook for cryptocurrencies as a massively disruptive technology,” she said. “Coinbase, as the only U.S.-listed large-cap stock and the market leader in the space, is really a must-own asset if you’re a growth or tech oriented [investor] with a multiyear time horizon.”
Eliis’ COIN stock prediction of $600 is based on the future growth projections of the company. Her company arrived at this price target by applying a forward multiple of 20 considering Coinbase’s project revenues for 2023. Interestingly, this prediction comes considering the downside as well!
Trending Stories
$600 COIN Stock Price Target Consider A Few Headwinds
After the massive run of the crypto market above $2.2 trillion, Ellis expects a possible 35% decline in crypto transactions in 2022 after a massive inrush this year. We certainly cannot expect Coinbase to grow 9x year-over-year as it appeared during its Q1 2021 results.
Ellis also noted that Coinbase is different from other tech stocks considering its high correlation with the volatile crypto market. She added:
“Six-hundred [dollars per share] I know the headline sounds super bullish, but when you read our comments this one is not an easy one, it’s a little bit tricky. With Coinbase, because of their tie to the crypto markets, it’s going to be a bumpy ride. You have to have a strong stomach, you have to be willing to kind of gut your way through what is likely to be these peaks and valleys.”
After the 2017 bull run, the BTC price dropped 80% in the upcoming year of 2018. However, this might not be the case considering institutional adoption this time. Coinbase has seen a four-fold increase in institutional trading from $28 billion in 2018 to $119 billion in 2020. This clearly shows that Coinbase’s institutional side of the business is growing strong.
- ETH Whales Add Polygon (MATIC) Amid Prices Surge Of 60% In Last 7 Days
- Uniswap ($UNI) Surges 45% As Trading Fees Surpass Ethereum
- Ethereum Merge Delay? Developers Concerned Over Shadow Fork
- MINA Price Jumps By 20% Over This Announcement
- Bitcoin Mining Data Suggests More Price Dumps Ahead; Details
- This Bitcoin Bear Market Is Unlike Any Other, Here’s Why
- Here’s Why Shiba Inu Ecosystem Tokens’ Prices Are Shooting Up
- Goldman Sachs Likely to Raise $2 Billion To Acquire Celsius Assets, But Here’s the Catch
- Here’s Why SEC Chair Wants Single Rulebook For All Crypto Trading
- Huge Cardano Breakout Imminent After This Resistance Level?
- Avalanche Price Analysis: Will The AVAX Breakout Rally Reach $30?
- Sandbox Price Analysis: U-shaped Recovery could Lead SAND above $1.5
- NEAR Price Analysis: Reversal Within Channel could Sink NEAR Below $3
- Solana Price Analysis: SOL Price Rallying North With Eyes On $59
- XRP Price Analysis: Trendline Reversal Could Dump XRP Back to $0.3
- AXS Price Analysis: Rising AXS Price Aims To Reclaim $17.6 Mark
- Polygon Price Analysis: Can Trendline Breakout Lead MATIC to $0.75?
- ArbiSmart Price Analysis: RBIS Retests Multi-month Support; Buy this Dip?
- Waves Price Analysis: Emerging Pattern Threatens to Break $4.16 Support
- Apecoin Price Analysis: Trendline Fakeout Could Tumble APE by 25%