Coinbase Upgraded to Neutral From Underperform at Bank of America on Positive Crypto Market Dynamics

Coinbase (COIN) shares rose 2.5% in pre-market trading on Friday after Wall Street giant Bank of America (BAC) upgraded the shares to neutral from underperform.
The investment bank raised its Coinbase price target to $217 from $110. The stock was trading around $204 at publication time.
Bank of America said it was upgrading the stock for a number of reasons, including the positive macro backdrop that has helped the cryptocurrency markets and trading volumes, analysts led by Mark McLaughlin wrote. The note also said the exchange’s expense discipline and increased diversification should also help its earnings.
However, the analysts noted that there are potential risks that could limit the the stock’s upside, including the exchange’s continued dependence on transaction revenue for profitability and the regulatory overhang linked to the ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC).
The shares fell over 9% yesterday following a report that the Chicago Mercantile Exchange (CME) might soon offer spot bitcoin trading, which could become a potential competitor to exchanges such as Coinbase.
Read more: Coinbase Shares Sink 9% on Report CME to Consider Listing Spot Bitcoin
Edited by Kevin Reynolds.
Disclosure
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.
Will Canny is CoinDesk’s finance reporter.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.