Shares upgraded to neutral from underweight to reflect rising crypto prices.

Coinbase stock rose as much as 8% in premarket trading.

The crypto exchange reports earnings after the close.

JPMorgan (JPM) upgraded the shares of crypto exchange Coinbase (COIN) to neutral to reflect the recent surge in cryptocurrency prices following the approval of spot bitcoin (BTC) exchange-traded funds (ETFs) in the U.S., it said in a research report Thursday.

Higher crypto prices are expected to improve activity levels and Coinbase’s earnings power in the first quarter, the report said.

The Wall Street giant raised the stock to neutral from underweight with an unchanged price target of $80.

Coinbase shares rose 6.5% to $170.80 in premarket trading. Other crypto-related stocks also rose as bitcoin, the world’s largest cryptocurrency, was trading around its recent highs of $52,400. MicroStrategy (MSTR) rose 3% and Marathon Digital (MARA) gained 3.5%.

The approval of spot bitcoin ETFs, initially a sell-the-news event, “has now turned into meaningful bitcoin appreciation,” the bank said.

“We think this bitcoin appreciation is contributing to better spot bitcoin ETF flows, which is in turn driving bitcoin prices higher, and pulling other tokens higher as well,” analysts led by Kenneth Worthington wrote.

The bank cautioned that following the near-400% increase in the share price last year, Coinbase shares could underperform in 2024, based on its valuation analysis.

“We are still not recommending the stock, but we do acknowledge the impact enthusiasm and consequently the activity and volumes that the U.S. spot bitcoin ETFs has injected into the crypto ecosystem, pushing it out of its 2022 crypto winter,” the report added.

The company reports earnings after the close today.

Read more: Coinbase Upgraded by Oppenheimer as Crypto Exchange Is ‘Stronger Than Many People Realize’

Read the full article here

Share.

Leave A Reply

Your road to financial

freedom starts here

With our platform as your starting point, you can confidently navigate the path to financial independence and embrace a brighter future.

Registered address:

First Floor, SVG Teachers Credit Union Uptown Building, Kingstown, St. Vincent and the Grenadines

CFDs are complex instruments and have a high risk of loss due to leverage and are not recommended for the general public. Before trading, consider your level of experience, relevant knowledge, and investment objectives and seek financial advice. Vittaverse does not accept clients from OFAC sanctioned jurisdictions. Also, read our legal documents and make sure you fully understand the risks involved before making any trading decision