Coinbase is Navigating Legal Minefields and Winning, This Bullish Analyst Says

Needham analyst John Todaro reiterated a Buy rating on Coinbase Global, Inc. COIN, with a price target of $70.

The analyst expects Coinbase to grow its trading revenue as the market-leading, fiat-crypto on-ramp in the quickly growing crypto ecosystem.

Over the longer term, the analyst expects the company to broaden its applications to include various crypto-related financial services activities, with near-term growth in its staking offering.

However, the company is grappling with litigation issues with state and federal securities regulators, the analyst flags, some of which are expected to be resolved in no fewer than 3-5 years.

Also Read: Coinbase CEO Brian Armstrong Defends Company Amid SEC Lawsuit, Contrasts With Binance Case

Coinbase is focused on listing new assets quickly while still operating compliantly; the analyst views this as crucial to increasing retail market share for its exchange business.

Todaro applauds the company's easy-to-use retail application, OTC execution business, and liquidity depth, which have gained momentum among institutional firms. 

In fact, the company's institutional business is expected to become a more significant trading segment as crypto markets mature, the analyst notes.

Overall, Coinbase remains optimistic about the "future of digital assets" bill passing in House & Senate in 2024 and expects bipartisanship, Todaro adds.

Price Action: COIN shares are trading higher by 3.54% to $52.35 on the last check Tuesday.