- H.C. Wainwright analyst initiates Coinbase with a “buy” rating.
- Mike Colonnese explained his bullish view in a research note.
- Coinbase stock has lost about 35% in just over a month.
A 35% pullback in Coinbase Global Inc over the past month is “overdone” and a recovery is coming soon, says Mike Colonnese – an H.C. Wainwright analyst.
Buy Coinbase stock for a 35% return
On Wednesday, Colonnese recommended that investors buy shares of the world’s second-largest and one of the best cryptocurrency exchange as they had upside to $75 – a 35% premium on its current price.
The analyst is bullish on Coinbase stock for one simple reason that rewards currently outweigh the risks.
Coinbase is uniquely positioned to benefit from large and rapidly growing crypto economy given its trusted brand, easy to use products, and focus on compliance and regulation.
Coinbase has a footprint in 100 countries and is serving about 8.3 million active users, which, Colonnese wrote, is scale enough for it to expand its market share this year.
Why else is he bullish on Coinbase stock?
Coinbase is expected to report its Q1 results next week. Consensus is for it to lose $1.36 a share this quarter versus $1.98 per share a year ago.
The H.C. Wainwright analyst is convinced that the crypto winter is over and the subsequent increase in trading volume will be a catalyst for the company’s operating performance. His research note added:
COIN is a scarce asset, as the only publicly listed crypto native company in the U.S. with a market cap >$10B, which means competition for investor capital is extremely limited.
Earlier this week, Coinbase sued the Securities and Exchange Commission after waiting for months to get an answer on its July 2022 petition. Regulatory clarity in the future will also help drive the Coinbase stock up, Colonnese concluded.
Click Here to Read the Full Original Article at CoinJournal: Latest Bitcoin, Ethereum & Crypto News…