Bank of America sees a long way to go for Coinbase to become “the Amazon of crypto assets” – Bitcoin News

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Bank of America launched the Coinbase Global cover. The bank has identified several factors that could increase Coinbase’s revenue. Regarding the crypto exchange’s plan to become “the Amazon of crypto assets,” Bank of America says it is “still at a very early stage of development.”

Bank of America is awaiting concrete signs of progress on Coinbase’s long-term vision.

Bank of America (Bofa) launched the cover of Coinbase Global Inc. (Nasdaq: COIN) on Friday. Jason Kupferberg, senior equity research analyst at Bank of America Merrill Lynch, launched Coinbase with a “neutral” rating and a price target of $ 273.

While the analyst sees Coinbase as the “leading provider of crypto infrastructure,” he warned that its stock, which is trading at 18.3 times sales, may have limited near-term upside potential. He described:

COIN aims to become the Amazon of crypto assets, although in our opinion COIN’s model is still in the early stages of development, and we expect more concrete signs of progress against COIN’s long-term vision. .

Coinbase CEO Brian Armstrong said last week during the company’s second quarter 2021 earnings call: “We want to be the Amazon of assets, listing all crypto assets that are legal. There are thousands of them today. There will eventually be millions. All this under the theme of adopting decentralization.

The Bank of America analyst is looking for Coinbase to diversify crypto trading fees, which currently account for 95% of the company’s revenue. Noting that services like staking and lending are starting to gain traction for the exchange, he pointed out that subscriptions and services represent important cross-selling opportunities that could increase Coinbase’s average revenue per user.

Stock chart for Coinbase Global Inc. (Nasdaq: COIN)

Several investment banks now cover Coinbase Global. Wedbush Securities started hedging Coinbase in May with a share price target of $ 275. The company raised the stock price target from $ 275 to $ 300 last week with an “outperform” rating for the stock.

In July, Mizuho lowered the price target for Coinbase from $ 225 to $ 210 while Oppenheimer increased the price target for COIN from $ 434 to $ 444. Raymond James started hedging Coinbase in June with an “outperformance” rating.

JPMorgan and Goldman Sachs launched the Coinbase cover in May. Goldman started off with a “buy” rating and a price target of $ 306 for COIN. JPMorgan started off with an “overweight” rating largely due to the company’s key position in the growing cryptocurrency space. The company has set Coinbase’s target price at $ 371.

Do you think Coinbase will soon become the Amazon of crypto assets? Let us know in the comments section below.

Tags in this story amazon of crypto, Bank of America, Bank of America Merrill Lynch, Bofa, COIN, coin stock, Coinbase, coinbase hedge, coinbase long term plans, coinbase share price, price target for the coinbase share, coinbase share quote, throw cover

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