+ 6.33
+ 1.98%
+ 3.59
+ 1.06%
+ 6.00
+ 1.46%
+ 0.49
+ 0.36%
+ 1.05
+ 0.61%

Coinbase Stock Analyst With $600 Price Target Says It Hinges On Bitcoin

April 16, 2021 10:59 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Coinbase Stock Analyst With $600 Price Target Says It Hinges On Bitcoin

MoffettNathanson analyst Lisa Ellis made headlines this week after placing a $600 price target on Coinbase Global Inc (NASDAQ:COIN) and calling the stock a "must-own" for long-term investors. Some may be underestimating how difficult it is to do what Coinbase is doing, Ellis said Friday on CNBC's "Squawk Box."

Coinbase is creating liquidity and exchanges for cryptocurrencies, as well as securely storing cryptocurrencies, Ellis told CNBC.

The company runs custom nodes on 15 blockchains, creating liquidity in 108 assets, she said. 

Coinbase is much more analogous to broader technology companies like Square Inc (NYSE:SQ), Shopify Inc (NYSE:SHOP) or Paypal Holdings Inc (NASDAQ:PYPL) as opposed to traditional exchange and brokerage companies, Ellis told CNBC.

The company is evolving into a technology platform for cryptocurrencies, she said. 

Coinbase has built something that has sustainability for "at least several years," Ellis said. 

Related Link: Coinbase Headed To $600 — Why Analyst Sees Crypto Exchange As 'Must-Own Stock' For Growth, Tech Buyers

The analyst equates Bitcoin (CRYPTO: BTC) with digital gold and Ethereum (CRYPTO: ETH) with the fuel behind the system.

 The future of Coinbase is dependent on Bitcoin "gaining more mainstream acceptance" as an alternative asset class, Ellis said. 

COIN Price Action: Coinbase Class A shares were up 2.56% at $331 at last check Friday. 

Image by Igor Schubin from Pixabay

Related Articles

Bitcoin Still Has Upper Hand Over Tesla Shares, Says Analyst Who Predicted Rise To $50K

An analyst who forecasted the apex cryptocurrency’s rise to $50,000 levels last year said Thursday that Bitcoin (BTC) has a relatively upper hand compared to Tesla Inc’s (NASDAQ: read more

Tesla Has Had A Major Bull In Cathie Wood's Ark. Now The Two Are At Odds Over Elon Musk's Bitcoin Stance

Cathie Wood-headed ARK Invest’s Director of Research Brett Winton is calling Bitcoin (BTC) a “novel economic institution” and said its potential outweighs its energy requirements — a stance diametrically opposite taken by Tesla Inc read more

Cardano, Dogecoin Spike As Bitcoin, Ethereum Lose Momentum On Elon Musk, Binance Jolts

As Bitcoin (BTC) and Ethereum (ETH) lose the spark, Cardano (ADA) and Dogecoin (DOGE) are seeing some smart gains. What Happened: BTC traded 0.62% higher at $50,150.95 at press time. The apex cryptocurrency, by market capitalization, has fallen 10.9% over a seven-day trailing period. read more

Coinbase Shares Rise On Q1 Revenue, To Offer Dogecoin In 6 To 8 Weeks

Coinbase Global Inc (NASDAQ: COIN) had its first quarterly earnings report as a publicly-traded company Thursday after market close. read more