Skip to content

We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform. Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Coinbase: Why are JPMorgan and Goldman Sachs upbeat?

US crypto trading platform Coinbase Global received bullish coverage from Wall Street research teams this week, despite its sluggish share price.

Source: Bloomberg
  • Coinbase Global Inc (All Sessions) (Nasdaq: COIN) share price dips to US$241.52
  • JPMorgan believes the exchange has ample growth opportunities
  • Analysts on average targeted Coinbase to hit US$390.27 per share
  • Buy and sell Coinbase stocks with an IG account

Will Coinbase’s stock price rebound soon?

Shares of newly listed Coinbase Global, the biggest US cryptocurrency exchange, inched down by 0.4% to close at US$241.52 on Wednesday (26 May 2021)

The cryptocurrency exchange’s stock has struggled to advance in recent weeks, weighed down by the extreme price volatility and recent bloodshed of Bitcoin and other digital tokens.

Since their first day of trading, on 14 April 2021, the shares have tumbled about 26.4%.

Still, out of 15 research teams, 11 recommended ‘buy’ and four said to ‘hold’ as of Thursday. On average, their 12-month target prices stood at US$390.27 per share, according to Bloomberg data.

Mizuho analysts recommended ‘neutral’ while slashing their price target to US$225, from US$315. They cited increased risks of a ‘crypto winter’, which occurs when prices of digital coins remain at low levels after crashing.

The recent plunge in cryptocurrency prices had put this major downside scenario on the table for Coinbase, Mizuho noted.

Why are some analysts optimistic about Coinbase?

JPMorgan’s research team this week initiated coverage on the exchange with an ‘overweight’ rating alongside a US$371 target price.

Despite the stock’s recent weakness and crypto price swings, JPMorgan kept a bright outlook as it likes Coinbase’s pole position in the market, and foresees COIN shares clawing back their losses amid sustained growth of the crypto market.

The company has organic and inorganic growth opportunities, although any success will depend on hiring the talent needed to develop and acquire ‘the best’ in crypto, the research team added.

The exchange also could expand into areas where traditional brokers have better monetised their business, for instance to grow in crypto-cash management, derivatives, lending, and advice, JPMorgan analyst Kenneth Worthington wrote.

Meanwhile, Goldman Sachs likewise initiated coverage on Coinbase, giving a ‘buy’ call and eyeing US$306 per share.

The stock provides ‘the best way to gain exposure to the expansion of the crypto-native ecosystem’, Goldman Sachs analysts said earlier this week.

They added: ‘If meaningful parts of the economy can transition to blockchain and crypto-native technology over time, we see a significant opportunity for COIN to benefit from its status as a critical element of the financial infrastructure for the ecosystem.’

Bloomberg Intelligence (BI) analysts pointed out that with cryptocurrency adoption still in its early stages, there is potential for triple-digit growth as Coinbase expands to institutional clients, who will bring ‘recurring fees, liquidity, and stability’ as compared to retail clients.

‘Newer competitors such as Square, PayPal and Robinhood may pressure pricing, but we believe Coinbase's scale, technology and compliance back its early-mover advantage,’ BI added.

Coinbase CFO Alesia Haas recently maintained the company’s bullish second-quarter guidance, saying that ‘the momentum that we are seeing is continuing’ and there remains ‘a lot of interest in crypto’.

Trade Coinbase and other top US stocks with IG

Create an IG account or log in to your existing account to get started now.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access
Learn more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.