Cryptocurrency prices have been on a tear lately, with Bitcoin and other digital assets surging to new heights. Against this backdrop, one analyst has made a bold call for Coinbase, the largest cryptocurrency broker in the US. Bo Pei, an analyst at U.S. Tiger Securities, has upgraded Coinbase to Buy from Hold and raised his price target on the stock to $200 from $65, a move that puts him far ahead of his peers.
Pei believes that Coinbase's fortunes are closely tied to those of the crypto market. As crypto prices rise, Coinbase's revenue and profits are likely to follow suit. The broker's core business remains fee-based crypto trading, and a bull market sees retail investors flocking to buy digital assets, thereby driving up Coinbase's revenues.
The recent surge in Bitcoin prices is a strong indication that a new bull market has begun, according to Pei. He points to historical trends in Bitcoin price moves, including the anticipation of the next "halving," as evidence of the bullish streak. He also sees upside for Ether prices.
However, Pei cautions that there are risks to Coinbase's growth prospects, particularly in the form of regulatory scrutiny. US lawmakers and regulators have been taking a closer look at crypto companies in the past year, and the collapse of FTX and the meltdowns of two banks that served the digital-asset industry have only heightened their concerns.
Despite these risks, Pei remains bullish on Coinbase's growth prospects. He believes that a new crypto bull market has begun and that Coinbase's revenue and profits could recover to their 2021 level when Coinbase was trading above $200.
In summary, the bull run in cryptocurrency prices bodes well for Coinbase's growth prospects, but regulatory risks loom large. Investors should pay attention to these risks while keeping an eye on the potential for Coinbase's stock price to triple, as predicted by Pei.
To take advantage of this opportunity, interested investors can buy cryptocurrency on Coinbase or invest in Coinbase's stock through the link provided (https://bit.ly/3c9dFE0).
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