BofA Sees Long-Term Upside in Coinbase Global (COIN) Despite Near-Term Crypto Volatility

Coinbase Global Inc. (NASDAQ:COIN) is among the best debt-free stocks to bargain now, with renewed expert optimism aft a caller crisp pullback. According to a January 8 study from The Fly, BofA upgraded the stock’s standing to Buy from Neutral and maintained its terms people of $340.

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While BofA acknowledged the 40% diminution successful the banal since its July all-time high, it believes the pullback was driven by a crypto-led correction and is unrelated to underlying fundamentals oregon company-specific issues. Rather, the study highlighted the enlargement of the full addressable marketplace and a faster gait of diagnostic rollouts (product velocity), indicating that the institution continued to fortify its strategical positioning amid volatility.

The steadfast besides highlighted Coinbase’s caller enlargement into banal and ETF trading and its introduction into prediction markets. With this, the institution should beryllium capable to broaden the level beyond axenic crypto trading. BofA viewed this arsenic supportive of management’s propulsion toward becoming an “everything exchange” and an accidental to cross-sell further products to its existing idiosyncratic base.

On the flip side, successful a enactment published astir the aforesaid time, Barclays maintained its cautious stance connected the stock, assigning an Equal Weight standing and reducing its terms people from $291 to $258. Barclays is pencilling successful respective headwinds successful its Q4 model, including little trading volumes, slower USDC growth, and continued volatility successful crypto plus prices.

The institution is scheduled to study Q4 results successful the 3rd week of February, and it seems similar a batch is riding connected that. However, the wide statement appears favorable, with conscionable nether two-thirds of analysts covering it standing it Buy and estimating a 1-year upside of astir 55%.

While we admit the imaginable of COIN arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.