Coinbase Global (COIN) stock has scaled the price charts in recent months, tracking the path of bitcoin's price. All eyes are on the cryptocurrency exchange again after bitcoin surpassed the psychologically significant $100,000 level for the first time late Wednesday night after President-elect Donald Trump nominated crypto-friendly Paul Atkins to head the Securities and Exchange Commission (SEC).
COIN is a primary beneficiary from bitcoin's resurgent popularity because its trading platform tends to see increased transaction volume from crypto-enthused retail and institutional investors. In addition, Coinbase holds 9,363 bitcoin on its balance sheet as of September 30, which is worth approximately $950 million based on the cryptocurrency's current price.
While $100,000 was a major milestone for bitcoin, financial services firm Bernstein thinks the digital asset can go even higher.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"We expect bitcoin to hit a cycle-high of $200,000 in late 2025," says Bernstein analyst Gautam Chhugani.
"We expect bitcoin to emerge as the new-age premier 'store of value' asset, eventually replacing gold over the next decade and becoming a permanent part of institutional multi-asset allocation and a standard for corporate treasury management," he adds.
Is Coinbase stock a buy, sell or hold?
Wall Street is bullish on Coinbase Global too. According to S&P Global Market Intelligence, the consensus recommendation among the 25 covering analysts it tracks is a Buy.
However, analysts' price targets have failed to keep up with the financial stock's surge higher. Indeed, shares have more than doubled since early September. The average analyst price target of $270.25 represents a discount of nearly 20% to current levels. Wall Street could issue price-target hikes if Coinbase continues to climb.
Financial services firm Needham is one of the more bullish outfits on COIN stock with a Buy rating and $375 price target.
"We view Coinbase as an attractive way to play the growing crypto asset universe, which includes overlap in the high-growth areas of stablecoins, decentralized finance (DeFi), non-fungible tokens (NFTs), exchanges in spot/derivatives, and blockchains (Base)," wrote Needham analyst John Todaro in a November 18 note.
The analyst expects Coinbase to "broaden its applications to include a variety of crypto-related financial services activities" over the long term.
Related Content
-
Four Financial Shocks Retirees Face and How to Avoid ThemTurn these financial shocks into mere "bothers" with a little foresight and preparation.
-
Time to Spring-Clean Your Finances: A Financial Professional's Four Steps to Tidy Them UpA midyear review of everything from spending to saving, with adjustments as needed, can set you on track to financial security. Plus, don't forget to check in on your workplace benefits.
-
Time to Spring-Clean Your Finances: A Financial Professional's Four Steps to Tidy Them Up
A midyear review of everything from spending to saving, with adjustments as needed, can set you on track to financial security. Plus, don't forget to check in on your workplace benefits.
-
Why a Law Firm Secretly Recording Client Conversations Is Wrong (and Illegal)A law firm that has been recording client conversations without the clients' knowledge or permission and has threatened employees if they speak out faces legal and ethical challenges.
-
Stock Market Today: Markets Discount Another U.S. DowngradeAfter Friday's closing bell, Moody's followed Standard & Poor's and Fitch and cut its rating on U.S. government debt.
-
Donating Complex Assets Doesn't Have to Be ComplicatedIf you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
What's Next for Stocks After a Chaotic SpringA chaotic tariff policy buffets investors looking for clarity on the economy and inflation.
-
Think a Repeal of the Estate Tax Wouldn't Affect You? WrongThe wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
In Your 50s? We Need to Talk About Long-Term CareMany people don't like thinking about long-term care, but most people will need it. This financial professional recommends planning for these costs as early as possible to avoid stress later.
-
Where to Invest in an Uncertain MarketIn an uncertain market, you can still pocket juicy payouts ranging from 4% to 14%, depending on risk.
