Coinbase (COIN) had a brilliant debut on Wall Street on Wednesday, April 14, closing at $328 per share and attracting valuations of $83 Billion at the time of closing on Nasdaq. On the day of the listing, this is a 30% increase.
The COIN share’s initial public offering price was $381, the play was spoilt by a bumpy trading session on the exchange.
However, Partner at MoffetNathanson Lisa Ellis in an interview with Yahoo Finance says she believes the COIN stock still has a lot of upside potential to reach the price target of $600. She also says it’s a must-own for long-term growth investors.
“Coinbase as the only US-listed large-cap stock and the market leader in the space is really a must-own asset if you’re a growth or tech-oriented (investor) with a multiyear time horizon.”
The $600 COIN stock forecast by Ellis is focused on the company’s future growth predictions. MuffetNathanson has derived this price target by multiplying Coinbase’s projected sales for 2023 by a factor of 20. Surprisingly, this forecast takes into account the negative aspects as well.
$600 Target Tricky to Achieve
After a massive influx this year, achieving a $2.2 trillion crypto market cap. Ellis predicts a potential 35% fall in the crypto transaction in 2022, as it can’t be expected for Coinbase to rise 9 fold over a year as it did in the first quarter of 2021.
She also points out, that Coinbase is different from other tech stocks as it has to function amidst the high volatility of crypto markets.
” $600 per share, I know the headline sounds super bullish, but when you read our comments this one is not an easy one, it’s a little bit tricky. With Coinbase, because of their tie to the crypto market, it’s going to be a bumpy ride.”
Ellis in her commentary says, they view Coinbase as a leading technology infrastructure provider for the cryptocurrency ecosystem, which provides essential building blocks to facilitate the use of cryptocurrencies.