Bank of America (BAC) has upgraded the stock of Coinbase Global (COIN) to a “buy” rating as the exchange grows beyond cryptocurrency trading.
In a note to clients, Bank of America highlights Coinbase’s efforts to become an “everything exchange.”
Over the past year, Coinbase has diversified to include more stock trading and peer-to-peer payments. The company is also expanding into prediction markets.
In December, Coinbase announced new features that include 24-hour trading for stocks listed in the S&P 500 index, along with a partnership it struck with prediction markets Kalshi.
Management at Coinbase Global has said that the diversification is designed to deepen user engagement and diversify the company’s revenue streams.
Bank of America likes what it has heard from Coinbase and sees a buying opportunity after the stock has pulled back 40% since last July.
Analysts at Bank of America maintain a $340 U.S. price target on COIN stock, implying nearly 40% upside from current levels.
The bank argues that Coinbase is still in the early stages of monetizing its broader platform and remains well-positioned as the most trusted cryptocurrency company in the U.S.
COIN stock has declined 5% over the last 12 months and currently trades at $245.59 U.S. per share.
