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Cowen says it’s time to buy Coinbase as the trading platform is a ‘pure-play’ in the cryptoeconomy


Cryptocurrencies remain volatile, but Coinbase is among the best-positioned exchanges to ride out the storm and come out on top, Cowen said. “Coinbase represents a pure-play on the increasingly broad-based and nascent cryptoeconomy,” wrote analyst Stephen Glagola in a note to clients Thursday. “We think this is a company that is built to last through the vagaries of crypto asset cycles.” Glagola initiated coverage of the cryptocurrency trading and investing platform with an outperform rating, noting strengths in Coinbase’s subscription and services platform. Shares of the crypto exchange have cratered 73.4% this year as the markets grapple with rising inflation and the fallout from the collapse of stablecoin TerraUSD . But Cowen thinks Coinbase can recover and sees the company’s security infrastructure and regulatory compliance as an advantage over some competitors. The company’s second-quarter earnings and expected U.S. derivatives launch could also serve as catalysts for the stock. “The company holds a dominant spot volume exchange position in the U.S. with a burgeoning subscription & services platform we believe can grow at a +DD% CAGR for the foreseeable future,” Glagola said. Cowen issued an $85 price target on the stock, which implies a 26.5% return from Wednesday’s close price. — CNBC’s Michael Bloom contributed reporting

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