Coinbase Upgraded to Neutral From Underperform at Bank of America on Positive Crypto Market Dynamics
Coinbase shares increased by 2.5% in pre-market trading after Bank of America upgraded the shares from underperform to neutral. The investment bank also raised its Coinbase price target from $110 to $217. The upgrade was attributed to a positive macro backdrop benefiting cryptocurrency markets and trading volumes, the exchange's expense discipline, and increased diversification. However, potential risks were identified, including Coinbase's dependence on transaction revenue for profitability and regulatory issues related to an ongoing lawsuit with the U.S. Securities and Exchange Commission. The shares had previously fallen by over 9% following a report that the Chicago Mercantile Exchange might offer spot bitcoin trading, potentially competing with Coinbase.
