Investment banking company Piper Sandler (PIPR) recently reiterated its Overweight rating on cryptocurrency exchange platform Coinbase (NASDAQ:)
Piper Sandler also suggested that now was a good time to buy the recent dip on the company. Piper Sandler seems slightly more optimistic about Coinbase.
Coinbase stock fell over 43% off of its record high at $429.54. The stock spent the majority of its year at $325 to $225 per shares, but has tended to stick with the lower end. (See Coinbase stock charts on TipRanks)
Coinbase recently slid on news that the Securities and Exchange Commission (SEC) was planning to investigate the company over Coinbase’s “Lend” product. Stablecoin holders were required to loan to others in return for interest. The SEC prepared to sue Coinbase for this move. According to the SEC, Lend appeared like an unregistered security products.
Wall Street’s Take
Wall Street consensus analysis calls Coinbase a Moderate Buy. It’s calculated on the basis of 11 Buys (three Holds) and one Sell (one).
A Coinbase average price target of 350.17 suggests an upside potential of 43.9%.
Still the Biggest Game in Town
A potential SEC investigation is never good news. But there are many ways Coinbase can still be a competitive advantage. Cathie Wood and Ark Investment Management purchased 101,823 Coinbase stock shares. This operation is likely to be a success, even if it’s not from Piper Sandler.
Many other analysts at investment banks believe that Coinbase will rebound in the near future.
It’s important to remember Coinbase’s market position. When it comes to cryptocurrency trading, Coinbase is still the best platform. There are many competitors on the market. Both established firms such as Bittrex and newcomers comparable to eToro are available.
Coinbase, however, is the name many people still trust when buying or selling cryptocurrency. It’s hard to lose this market advantage and it is easy to hold onto.
Coinbase could improve by offering more cryptocurrency access, but you should always have a backup plan for any potential improvements. Coinbase allows you to trade in just 50 coins. As of January 2021, there was over 4,000 available cryptocurrencies.
It’s hard not to be somewhat bullish on Coinbase. Coinbase users will turn to it as long as there is an interest in cryptocurrency, whether they are selling or buying. Coinbase is a trusted platform to trade in cryptocurrency.
This will keep people coming back, as well as investors.
Disclosure: Steve Anderson didn’t hold any positions in the securities discussed in this article at the time it was published.
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