William Blair analyst Andrew Jeffrey has reiterated their bullish stance on COIN stock, giving a Buy rating yesterday.
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Andrew Jeffrey has given his Buy rating due to a combination of factors that highlight Coinbase’s potential for long-term growth and market leadership in the crypto space. He points out that despite a recent dip in trading volume, Coinbase remains a strong player with shares significantly undervalued compared to their 52-week high. This presents an opportunity for investors to capitalize on the company’s strategic investments in infrastructure and its ability to maintain a leading position in the rapidly evolving crypto market.
Furthermore, Jeffrey emphasizes Coinbase’s diverse revenue streams, including stablecoins, staking, and subscription services, which contribute to its robust financial outlook. The acquisition of Deribit is seen as a strategic move to expand Coinbase’s global derivatives platform, further enhancing its market share. Jeffrey also notes that Coinbase is poised to achieve a sustainable EBITDA margin above 50% in the long term, making it an attractive investment with a favorable risk/reward profile compared to its fintech peers.
According to TipRanks, Jeffrey is a 5-star analyst with an average return of 14.2% and a 64.02% success rate. Jeffrey covers the Technology sector, focusing on stocks such as Fiserv, Block, and Corpay Inc.
In another report released yesterday, Bernstein also maintained a Buy rating on the stock with a $510.00 price target.