Asset management firm Bernstein has made a bold prediction regarding the future of Coinbase (COIN), one of the top US crypto exchanges. According to reports, Bernstein’s managing director of global digital assets, Gautam Chhugani, believes that Coinbase stock is on the brink of a major breakout.
Chhugani has stated that he expects Coinbase’s stock to potentially surge by more than 72% from its current value. This optimistic outlook is based on anticipated pro-crypto regulatory changes under the administration of US President Donald Trump. Bernstein has given Coinbase an “outperform” rating and set a price target of $310, significantly higher than its current value of $180.
“With the Trump Administration’s aspiration to make America the ‘crypto capital of the world,’ Coinbase remains the dominant platform with a 66% market share in the US,” says Chhugani. He believes that regulatory clarity bills, particularly those related to stablecoins, could bring increased competition for Coinbase. However, he is confident that the overall growth of the crypto industry in the US will benefit Coinbase in the long run.
Chhugani also predicts that Coinbase will experience a compound annual growth rate of approximately 31% in its non-trading revenues. He points out that Coinbase has successfully expanded its range of crypto financial services beyond trading, including market-leading services in USD stablecoins and crypto yield services such as staking.
In conclusion, Bernstein’s positive outlook on Coinbase’s future performance is driven by expectations of favorable regulatory changes and the company’s strong position in the US crypto market. Despite potential competition from other players in the industry, Bernstein believes that Coinbase’s innovative offerings and market dominance will help it thrive in the evolving crypto landscape.
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(Image credit: Midjourney)