By Sam Boughedda
Investing.com — Citi started coverage of crypto exchange Coinbase Global Inc (NASDAQ:COIN) with a buy rating on Tuesday and a $415 price target.
Despite the positive review, Coinbase shares are down 1.45% at $320.82 in afternoon trading.
In a research note, Citi analyst Peter Christiansen told investors that the stock offers investors direct exposure to increased retail and institutional adoption of cryptocurrencies.
"For its position within the crypto value chain, a `networking-based' business model and strategy, the undeniably very large opportunity set … yes, we believe COIN is investable," said Christiansen.
Christiansen added that the stock is in place to make "higher highs and higher lows" as cryptocurrency adoption spreads.
The analyst said he also sees Coinbase benefitting from its expansion into other areas, such as its NFT marketplace and cold wallet storage.
Regarding regulation, Citi said," To a degree, we think rising regulations could be a positive for Coinbase's competitive positioning, particularly versus business models that predominantly rely on markets being unregulated."
Elsewhere, Piper Sandler is also bullish on Coinbase stock, with analyst Richard Repetto raising the company's price target to $360 from $335, maintaining its overweight rating. Repetto pointed to Bakkt's deal with Mastercard as an example of "greater mainstream adoption" of cryptocurrencies.