Investing.com – Coinbase stock (NASDAQ:COIN) rose 1.6% Tuesday on a report by Needham that said the company has significant future opportunities with the potential to be more than a crypto exchange.
Analyst John Todaro initiated coverage of the stock with a target of $420, an approximately 62% jump from its current price of $160.
Tadaro expects the company’s exchange business to grow rapidly and sustainably as new investors adopt its crypto assets and services.
Coinbase is the largest crypto exchange by trading volume and the only listed one.
According to the analyst, the exchange’s 2021 revenue is seen 467% higher while the next financial year’s could rise 9%.
Brushing aside concerns that Coinbase charges high fees, Todaro said the company is on the way to establish itself as a “one-stop-shop” for all crypto financial services and the non-commoditized nature of crypto exchanges differentiates them from traditional brokerage firms.
He said Coinbase has become quicker at listing new assets and is setting itself up as the go-to exchange for retail and institutional users.