JMP Securities: Coinbase is the Key Player in a New Asset Class
According to JMP Securities, Coinbase is the driving force behind the creation of a new asset class, much like Amazon’s impact on the e-commerce industry. The firm has raised its 12-month price target for Coinbase from $107 to $200, indicating a potential 19% increase from its previous closing price of $168.03. As bitcoin rebounds and hopes for an exchange-traded fund approval rise, Coinbase stock has surged by almost 375% since the beginning of the year.
Coinbase’s Value Beyond Being a Cryptocurrency Exchange
Analyst Devin Ryan believes that Coinbase offers value beyond its role as a large cryptocurrency exchange. While acknowledging that the industry and the stock may not always perform smoothly, Ryan predicts that the cryptocurrency sector will continue to grow significantly, with Coinbase leading the way. He suggests that if investors were to value Coinbase solely as an exchange business, the stock may be overvalued. However, considering Coinbase as an industry leader and a gateway into the digital asset economy, Ryan expects it to grow in line with the broader ecosystem, which he estimates could expand more than five times its current size over the next decade.
Comparisons to Amazon and Future Opportunities
Ryan draws parallels between Coinbase and Amazon, highlighting their ability to anticipate and implement innovation effectively. He believes that Coinbase is still in its early stages but possesses similar attributes and mindset as Amazon did decades ago. Ryan sees immense potential in expanding ancillary areas related to owning and selling digital assets. Additionally, he predicts that as the digital asset ecosystem evolves, it has the potential to impact every aspect of the economy.
Hot Take: Coinbase’s Growth Potential Mirrors Amazon’s Impact on E-Commerce
JMP Securities raises its 12-month price target for Coinbase, recognizing its role in creating a new asset class and drawing comparisons to Amazon’s influence on the e-commerce industry. Analyst Devin Ryan believes that Coinbase’s value extends beyond being a cryptocurrency exchange and predicts significant growth for the company as the digital asset ecosystem expands. While acknowledging potential volatility, Ryan suggests that if investors view Coinbase as an industry leader, it could experience substantial growth in line with the broader ecosystem. With Coinbase still in its early stages, there are vast opportunities to explore ancillary areas related to digital assets, potentially impacting every aspect of the economy.
By
By
By
By
By
By