Why Wedbush upgraded Coinbase

Analysts at Wedbush said they took a favorable view of Coinbase Global (COIN) on Thursday, initiating coverage of the largest U.S. cryptocurrency exchange with an outperform rating and a $275 price target.

“Our earnings model conservatively factors 20% revenue and cash-earnings-per-share growth for the calendar years 2022 and 2023,” Wedbush analyst Moshe Katri wrote in a commentary.

That “reflects continued strong crypto adoption/traction as an investment/payments vehicle, as well as the company’s ongoing monetization initiatives,” he said.

“We view COIN as a one stop shop, enabling roughly 56 million retail users, 8,000 institutions, and 134,000 ecosystem partners in over 100 countries to participate in the crypto economy.”

Coinbase recently traded at $231.98, up 3.2%. It has dived 32% since its initial public offering last month amid volatility in the cryptocurrency market.

In early trading activities today on Wall Street, COIN has now gained over 4% as Bitcoin and other cryptocurrencies rebound after a historic crash yesterday.