Coinbase World, Inc. NASDAQ: COIN is a type of shares you simply cannot maintain your eyes off. Whether or not it is ripping larger or collapsing onto itself, you are assured leisure. One factor’s for positive: investing in one of many world’s greatest cryptocurrency exchanges is not for the faint of coronary heart. 

In lower than two years, the inventory went from IPO’ing above $400 to buying and selling for lower than $40 a share. Since tagging a low at first of final yr, nevertheless, Coinbase shares have been doing what they beloved finest: rallying. The inventory has rallied as a lot as 500% in that timeframe, with its justifiable share of eye-watering pullbacks alongside the best way, and all advised, it’s presently up round 300% prior to now twelve months. 

The present state of play

Over the previous few weeks, shares have been consolidating, having softened within the first few weeks of January. Nonetheless, a 7% bounce in yesterday’s session belied the built-up momentum they nonetheless maintain inside, and there are some robust causes to assume there’s much more the place that got here from. 

On January 26, 2024, we noticed the workforce at Oppenheimer improve their score on Coinbase inventory from Carry out to Outperform. In addition they gave the inventory a recent worth goal of $160. Even together with yesterday’s bounce, that factors to an additional upside of at the very least 20%. The Oppenheimer workforce is especially bullish on the corporate’s prospects in terms of grabbing market share, noting that “whereas many friends went below, Coinbase continues to be standing and preventing for its companies and the trade.” That is all of the extra related contemplating the renaissance that cryptocurrencies are presently present process. 

For higher or for worse, Coinbase and crypto-related shares prefer it are inclined to go up and down in tandem with the broader sentiment towards the underlying cryptocurrencies. To paraphrase an previous saying, when Bitcoin sneezes, Coinbase catches a chilly. It is no coincidence that Coinbase’s plummet coincided with Bitcoin’s 80% crash. In an analogous vein, it is also not a coincidence that Coinbase is now again in favor proper as Bitcoin surges to 52-week highs. 

For these of us on the sidelines and contemplating getting concerned, be it as a technique to acquire short-term publicity to the bullish sentiment sweeping crypto proper now or to construct a long-term place, the outcomes from the continued SEC lawsuit can have a large impact on the inventory’s course. Oppenheimer’s improve was made on the premise that Coinbase would both win the case or see it dismissed. Assuming one among these two eventualities involves move, the outlook is exceedingly vibrant. 

Getting concerned 

Coinbase is trending in the direction of hitting constructive GAAP EPS within the coming quarters and has a administration workforce that’s “more durable than most traders assume,” in accordance with Oppenheimer. And the most effective half? They’re removed from alone of their bullish outlook and excessive expectations. Citigroup and Wedbush have already boosted their worth goal on Coinbase inventory this yr, with JMP Securities going as far as to provide it a $200 worth goal simply earlier than the vacations. For sure, from present ranges, that is pointing in the direction of an additional upside of fifty%, which ought to be greater than sufficient to tempt most traders with at the very least some urge for food for threat.

Have been Coinbase shares in a position to hit that stage within the coming months, they’d have set a brand new excessive above December’s peak and, in doing so, would have confirmed that the present uptrend could be very a lot intact. The corporate is because of launch its subsequent earnings report in two weeks, and that can inform traders loads concerning the inventory’s capability to satisfy and exceed these loft expectations. 

Search for progress in each income and earnings, with a constructive print on the latter, which is more likely to be the principle metric traders are looking forward to. With such constructive momentum behind Coinbase shares proper now, it is arduous to guess towards them and even tougher to take a seat on the sidelines. 

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