Summary
JPMorgan upgraded Coinbase Global’s stock to neutral, causing a 10% increase in its value. The upgrade was influenced by the sustained momentum of Bitcoin’s price and the launch of Bitcoin exchange-traded funds (ETFs). The analyst believes that the price appreciation of Bitcoin and the growing interest in spot trading will improve Coinbase’s earnings power. The company’s strong links to Bitcoin, its positive Q3 2023 earnings, and its selection as the custodian for several Bitcoin ETFs have also contributed to investor optimism. The stock’s correlation with Bitcoin’s price is seen as another reason for positivity. The article also mentions that the COIN price is approaching a resistance level and a breakout above it could lead to further gains.
Key Points
1. JPMorgan upgraded Coinbase Global’s stock to neutral, leading to a 10% increase in its stock price. The upgrade was based on the potential for Coinbase to benefit from its strong links to the sustained Bitcoin price momentum.
2. JPMorgan analyst Kenneth Worthington changed his rating on Coinbase from underweight to neutral due to the positive impact of Bitcoin exchange-traded funds (ETFs) on the price of Bitcoin. This bullish price momentum improves the earning power of crypto companies like Coinbase.
3. Worthington and others are optimistic about Coinbase stock ahead of its Q4 2023 earnings call. In Q3 2024, Coinbase beat revenue estimates with a 14.2% annual increase. Additionally, Coinbase’s custody business is expected to thrive, as it has been chosen as the custodian for Bitcoin ETFs from various companies.