Coinbase Stock Analyst With $600 Price Target Says It Hinges On Bitcoin

MoffettNathanson analyst Lisa Ellis made headlines this week after placing a $600 price target on Coinbase Global Inc COIN and calling the stock a "must-own" for long-term investors. Some may be underestimating how difficult it is to do what Coinbase is doing, Ellis said Friday on CNBC's "Squawk Box."

Coinbase is creating liquidity and exchanges for cryptocurrencies, as well as securely storing cryptocurrencies, Ellis told CNBC.

The company runs custom nodes on 15 blockchains, creating liquidity in 108 assets, she said. 

Coinbase is much more analogous to broader technology companies like Square Inc SQ, Shopify Inc SHOP or Paypal Holdings Inc PYPL as opposed to traditional exchange and brokerage companies, Ellis told CNBC.

The company is evolving into a technology platform for cryptocurrencies, she said. 

Coinbase has built something that has sustainability for "at least several years," Ellis said. 

Related Link: Coinbase Headed To $600 — Why Analyst Sees Crypto Exchange As 'Must-Own Stock' For Growth, Tech Buyers

The analyst equates Bitcoin BTC/USD with digital gold and Ethereum ETH/USD with the fuel behind the system.

 The future of Coinbase is dependent on Bitcoin "gaining more mainstream acceptance" as an alternative asset class, Ellis said. 

COIN Price Action: Coinbase Class A shares were up 2.56% at $331 at last check Friday. 

Image by Igor Schubin from Pixabay.