Connect with us

Hi, what are you looking for?


Bank of America Upgrades Coinbase Rating to Neutral, Raises Price Target to $217

Bank of America (BAC) upgraded its rating on Coinbase (COIN) shares from underperform to neutral on Friday and raised its price target for Coinbase to $217 from $110, reflecting a positive outlook for the cryptocurrency exchange.

Following the announcement, the COIN price rose 2.5% in the pre-market and is up 4.23% for the day.

Bank of America Cites Favorable Market Conditions

Bank of America’s decision to upgrade Coinbase is based on several factors.

Analysts led by Mark McLaughlin cited the favorable macro backdrop that has supported the cryptocurrency markets and increased trading volumes.

They also highlighted Coinbase’s commitment to expense discipline and diversification as factors that could contribute to improved earnings.

Despite the upgrade, Bank of America analysts acknowledged potential risks that could limit the stock’s upside.

.@BankofAmerica raised @coinbase to neutral from underperform and boosted its price target to $217 from $110.

The current macro backdrop has been positive for crypto market cap growth and trading volumes, the report said.

— ICO Drops (@ICODrops) May 17, 2024

One concern is Coinbase’s reliance on transaction revenue for profitability, which could pose challenges if market conditions change.

Additionally, the ongoing lawsuit between Coinbase and the U.S. Securities and Exchange Commission (SEC) creates regulatory uncertainty that could impact the company’s operations.

Coinbase shares had declined over 9% the previous day following reports that the Chicago Mercantile Exchange (CME) might enter the spot bitcoin trading market, potentially emerging as a competitor to Coinbase and other exchanges.

KBW Increases Coinbase Price Target to $230

Aside from Bank of America, investment banking firm KBW has also increased its Coinbase price target.

Last month, KBW hailed Coinbase for offering investors a unique opportunity to tap into the crypto economy’s long-term growth potential.

In a research analysis, KBW raised its Coinbase price target from $160 to $230 while maintaining its market performance rating.

Meanwhile, Coinbase has also faced its fair share of regulatory trouble.

Last month, Judge Katherine Polk Failla of the US District Court of the Southern District of New York ruled that the SEC’s lawsuit against Coinbase can proceed.

The Judge’s decision came after Coinbase filed a motion to dismiss the SEC case, which borders on allegations the exchange operates as an unregistered securities exchange, broker, and clearing agency.

In her ruling, Judge Failla declared that the SEC’s lawsuit against Coinbase held “plausible” ground.

“The Court finds the SEC has sufficiently pleaded that Coinbase operates as an exchange, as a broker, and as a clearing agency under the federal securities laws, and through its Staking Program engages in the unregistered offer and sale of securities,” the court document read.

As reported, Kathryn Haun, a former Assistant U.S. Attorney and partner at Andreesen-Horowitz, has stepped down from Coinbase’s board.

The post Bank of America Upgrades Coinbase Rating to Neutral, Raises Price Target to $217 appeared first on Cryptonews.

You May Also Like


Newmont (NYSE: NEM) reported mixed financial results even as the price of gold approached its all-time high. In all, the company’s earnings per share...


Fisker (NYSE: FSR) stock price has been one of the best-performing electric vehicle (EV) stocks this week even as Tesla slumped. The shares jumped...


NatWest (LON: NWG) share price rose sharply, helped by the strong results from Barclays. The stock jumped to a high of 274.8p, which was...


The Fox Corporation (NASDAQ: FOX) stock price has been under pressure as investors come to terms with the abrupt firing of Tucker Carlson. The...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the-company.

Copyright © 2024