Analysts: Coinbase's new product launch strengthens its bullish outlook, but its upside potential has not yet been fully realized.
PANews reported on December 19th that, according to The Block, JPMorgan Chase and Benchmark believe Coinbase's comprehensive product expansion strengthens the bullish case for the cryptocurrency exchange's stock, noting that the series of new products launched on Wednesday could expand the company's potential market and drive user engagement in ways that are not yet fully reflected in current expectations. Benchmark reiterated its buy rating on COIN (Coinbase stock code) and maintained its price target of $421, stating that this product showcase marks a shift from marketing language to a clearer execution roadmap. The company stated that this move is a significant shift in Coinbase's ambition to build a unified financial platform that could diversify its revenue streams beyond the spot cryptocurrency trading cycle.
JPMorgan Chase maintains an "overweight" rating on COIN, citing the announcements as significantly increasing the ways users can trade and engage within the app. While the presentations were geared towards customers rather than investors and did not elaborate on economic benefits, the bank stated that it sees increasing revenue opportunities based on trading and subscription products as user engagement deepens. This bullish view echoes a recent report from Deutsche Bank. Deutsche Bank began covering COIN stock earlier this week with a "buy" rating and a $340 price target, stating that the company's commitment to becoming a one-stop trading platform is a key driver of its long-term upside.
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