Wedbush took a favorable view of Coinbase Global (COIN) on Thursday, initiating coverage of the largest U.S. cryptocurrency exchange with an outperform rating and a $275 price target.
“Our earnings model conservatively factors 20% revenue and cash-earnings-per-share growth for the calendar years 2022 and 2023,” Wedbush analyst Moshe Katri wrote in a commentary.
That “reflects continued strong crypto adoption/traction as an investment/payments vehicle, as well as the company’s ongoing monetization initiatives,” he said.
“We view COIN as a one stop shop, enabling roughly 56 million retail users, 8,000 institutions, and 134,000 ecosystem partners in over 100 countries to participate in the crypto economy.”
Coinbase recently traded at $231.98, up 3.2%. It has dived 32% since its initial public offering last month amid volatility in the cryptocurrency market.
The stock slid 6% Wednesday after the pricing of $1.25 billion of convertible senior notes, which will pay interest of 0.5%, and a sharp drop in cryptocurrencies. After falling nearly 30% on Wednesday, the price of Bitcoin was up 7.7% to $41,916 on Thursday morning.
Coinbase also said Wednesday that its website was back online after it went down earlier in the day amid the cryptocurrency plunge.
In other crypto news, TheStreet.com founder Jim Cramer said Wednesday's Bitcoin-triggered mayhem underscores the need for tighter regulation on what he sees as a 'new systemic' risk in the market.
Meanwhile, Dogecoin, the cryptocurrency started as a joke, is recovering from steep losses Thursday, after yet another cryptic tweet from Tesla Chief Executive Elon Musk.
“How much is that Doge in the window?,” Musk tweeted Thursday morning alongside a photo of Tesla’s soon-to-be-produced Cybertruck with the word "Cyberviking" emblazoned in neon underneath.