Coinbase Receives Optimistic Assessment from Oppenheimer Amid SEC Legal Dispute

Coinbase Global, trading under ticker symbol COIN, received a vote of confidence from equity research firm Oppenheimer, which on Friday upgraded the company's stock to an Outperform rating with a price target of $160.00.

The surge in optimism comes as Coinbase faces a legal battle with the Securities and Exchange Commission (SEC). Analysts from Oppenheimer suggest that Coinbase is likely to come out on top, whether through winning the lawsuit or having it dismissed by the courts.

This expectation is based on current legal precedents and how they view the SEC's authority over the cryptocurrency realm.

The report also highlights that the rollout of a spot Bitcoin ETF, while seemingly adding to competition, will not significantly impact Coinbase due to its vast array of services and lack of an expense ratio. Therefore, customer retention is anticipated.

Optimism is further bolstered by projections of Coinbase showing positive earnings per share in the fourth quarter of 2023 or early 2024, supported by a marked increase in trading volume at the start of the latter year.

Other potential growth drivers for Coinbase include anticipated gains in market share, its ability to maintain premium pricing, the release of new crypto ETF products, scaling operations internationally, and a strong financial base.

Despite recent challenges in the market, often termed the 'crypto winter,' Coinbase has demonstrated remarkable resilience, maintaining robust operations under a strong management team well-versed in the complexities of the cryptocurrency market.

Coinbase, Oppenheimer, SEC