Why Are Analysts Optimistic About Coinbase Stock?

<p>COIN shares have declined from their early November highs, but analysts anticipate further gains. Here are three reasons why Wall Street believes Coinbase stock is currently a good buy.</p> <p>Coinbase (COIN) is the largest cryptocurrency exchange platform by trading volume in the United States. COIN shares, however, have been quite volatile since going public in April.</p> <p>Coinbase appears to be extremely sensitive to changes in the price of cryptocurrencies. Coinbase's price has fluctuated between a 52-week high of $429 and a 52-week low of $208 in the last 52 weeks. Shares are currently trading nearly 30% below their initial purchase price.</p> <p>Nonetheless, the Wall Street consensus is bullish, with analysts forecasting a massive increase in COIN's value by 2022.</p> <p>The following are the opinions of industry analysts regarding Coinbase's stock.</p> <p>The prevailing wisdom suggests a strong buy.</p> <p>At the moment, Wall Street sentiment is extremely bullish on Coinbase stock. It currently has a strong Buy rating and a price target of $398. This equates to a potential gain of more than 63% over current levels.</p> <p>The Bull Case: $600 as a Suggested Purchase Price</p> <p>Lisa Ellis of MoffettNathanson is Coinbase's largest bull at the moment. The stock has a target price of $600, which she has set. This implies a whopping 146 percent increase in value relative to current levels.</p> <p>COIN was dubbed a "must own" stock when the company went public. Her bull case was based on Coinbase's position as a leading technology company that develops the infrastructure necessary to enable a broader developer ecosystem to use cryptocurrencies. Her target price of $600 was calculated using a revenue multiple of 2023.</p> <p>A month ago, the analyst reiterated her bullish price target on the stock, citing the company's recent partnerships with Meta (FB) - Get Meta Platforms Inc. Class A Report and the NBA, the implications of the ProShares Bitcoin ETF, and the ongoing dialogue between Coinbase and