Investment Bank Goldman Sachs, In A Note For Clients Released Today, Assigned A Buy Rating To Cryptocurrency Exchange Coinbase Shares And Predicted Their Rise By 35% By The End Of This Year.
Coinbase Is Down More Than 45% Since Listing On The Nasdaq Exchange Last Month. Nonetheless, Goldman Sachs Analysts Believe They Are Able To Recoup Much Of The Fall In The Foreseeable Future. This, They Said, Will Be Helped By Coinbase’s Willingness To Provide New Features And Capabilities To Customers, The Ability To Capitalize On The Volatility Of The Cryptocurrency Market, And Its Status As The Leading Consumer Platform In An Ecosystem Experiencing Strong Growth.
“while We Believe Coinbase’s Core Business Is Now Forming An Attractive Growth Profile For Potential Profitability Gains, We Also See Significant Gaps That Can Be Filled With New Initiatives And Help Create More Stable Revenue Streams To Complement Existing Trading Business In The Long Term,” Writes Goldman Sachs.
Analysts Admit That The Future Of Coinbase Will Primarily Determine The Success Or Failure Of Cryptocurrencies As An Asset Class, But At The Same Time, They Note That Its Shares “Represent A First-class Way To Invest In The Development Of The Ecosystem.”
Coinbase Stocks Rose 3.5% Before Opening Today Following A Positive Assessment From Goldman Sachs And Amid A Recovery In The Broader Crypto Market.