Coinbase Will Lead Crypto Economy Into The Mainstream, Says JMP Securities

Coinbase Global Inc COIN is likely to remain a leader in the cryptocurrency industry for years to come, according to JMP Securities.

The Coinbase Global Analyst: Devin Ryan initiated coverage of Coinbase Global with a Market Outperform rating and $300 price target. 

The Coinbase Global Takeaways: The company has achieved exponential growth in recent years and reached a scale that creates a competitive advantage, Ryan said in the initiation note.

Despite the phenomenal growth, both Coinbase Global and the cryptocurrency industry are “still in the early innings of their growth cycles,” the analyst said. 

“The crypto economy is entering the mainstream, creating significant opportunity for Coinbase,” as its fate is “directly tied” to that of the broader crypto markets, he said.

“As a first mover with material scale and expertise, Coinbase has numerous competitive advantages.”  

Coinbase is only scratching the surface of its long-term potential in what JMP sees as a fast-growing and evolving addressable market, Ryan said. 

"We see a compelling value proposition in COIN shares."

COIN Price Action: Shares of Coinbase Global were trading down 1.52% at $228.70 Tuesday morning.