Coinbase Global (COIN) stock has scaled the price charts in recent months, tracking the path of bitcoin's price. All eyes are on the cryptocurrency exchange again after bitcoin surpassed the psychologically significant $100,000 level for the first time late Wednesday night after President-elect Donald Trump nominated crypto-friendly Paul Atkins to head the Securities and Exchange Commission (SEC).
COIN is a primary beneficiary from bitcoin's resurgent popularity because its trading platform tends to see increased transaction volume from crypto-enthused retail and institutional investors. In addition, Coinbase holds 9,363 bitcoin on its balance sheet as of September 30, which is worth approximately $950 million based on the cryptocurrency's current price.
While $100,000 was a major milestone for bitcoin, financial services firm Bernstein thinks the digital asset can go even higher.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"We expect bitcoin to hit a cycle-high of $200,000 in late 2025," says Bernstein analyst Gautam Chhugani.
"We expect bitcoin to emerge as the new-age premier 'store of value' asset, eventually replacing gold over the next decade and becoming a permanent part of institutional multi-asset allocation and a standard for corporate treasury management," he adds.
Is Coinbase stock a buy, sell or hold?
Wall Street is bullish on Coinbase Global too. According to S&P Global Market Intelligence, the consensus recommendation among the 25 covering analysts it tracks is a Buy.
However, analysts' price targets have failed to keep up with the financial stock's surge higher. Indeed, shares have more than doubled since early September. The average analyst price target of $270.25 represents a discount of nearly 20% to current levels. Wall Street could issue price-target hikes if Coinbase continues to climb.
Financial services firm Needham is one of the more bullish outfits on COIN stock with a Buy rating and $375 price target.
"We view Coinbase as an attractive way to play the growing crypto asset universe, which includes overlap in the high-growth areas of stablecoins, decentralized finance (DeFi), non-fungible tokens (NFTs), exchanges in spot/derivatives, and blockchains (Base)," wrote Needham analyst John Todaro in a November 18 note.
The analyst expects Coinbase to "broaden its applications to include a variety of crypto-related financial services activities" over the long term.
Related Content
-
Before You Invest Like a Politician, Consider This DilemmaAs apps that track congressional stock trading become more popular, investors need to take into consideration some caveats.
-
How to Put Together Your Personal Net Worth StatementNow that tax season is over for most of us, it's the perfect time to organize your assets and liabilities to assess your financial wellness.
-
Stock Market Today: Trump Retreats, Markets RejoiceStocks rally, yields soften, the dollar rises, and even beaten-down names enjoy the wages of potential trade peace.
-
Tesla Stock Pops as Elon Musk Promises DOGE Draw BackTesla reported a sharp drop in first-quarter earnings and sales, as the EV maker suffered a backlash to its CEO's political ambitions.
-
Bouncing Back: New Tunes for Millennials Trying to Make ItAdele's mournful melodies kick off this generation's financial playlist, but with the right plan, Millennials can finish strong.
-
Early-Stage Startup Deals: How Do Convertible Notes Work?Some angel investors support early startups by providing a loan in exchange for a convertible note, which includes annual interest and a maturity date.
-
Stock Market Today: Stocks Soar on China Trade Talk HopesTreasury Secretary Bessent said current U.S.-China trade relations are unsustainable and signaled hopes for negotiations.
-
How Can Investors Profit From AI's Energy Use?Global energy demand is expected to grow by leaps and bounds over the next several years as AI usage accelerates. Here's how to get a piece of the pie.
