Investment bank Citi has upgraded its share price target for Coinbase from “neutral” to “buy,” citing a shifting political landscape and recent Supreme Court decisions as positive catalysts for the stock.
Points
- Citi upgrades Coinbase shares from “neutral” to “buy”
- New target price set at $345
- Shifting political landscape in the US seen as a positive catalyst
- Potential crypto-friendly administration with Trump’s campaign
- Overturning of Chevron Defense Doctrine seen as beneficial for Coinbase
Investment bank Citi has increased its share price target for crypto exchange Coinbase, citing a shifting political landscape and a recent Supreme Court decision as bullish catalysts for the stock. In a July 23 investor note, Citi analysts Peter Christiansen, David Wieloszynski, and Nicolette Radomski upgraded their guidance on Coinbase （COIN） from “neutral” to “buy,” with a new target price of $345.
The analysts pointed to the recent developments in the United States election race, particularly the potential for a crypto-friendly administration if former President and Republican nominee Donald Trump wins. Trump has made Bitcoin and crypto a key element of his campaign, pledging to end the Biden administration’s “war on crypto,” ban central bank digital currencies （CBDCs）, and expand protections for US-based Bitcoin miners.
Citi also highlighted the significance of the Supreme Court’s decision to overturn the 40-year-old Chevron Defense Doctrine. This doctrine previously allowed courts to defer to a government agency’s interpretation of ambiguous laws. With its removal, courts must now use their own judgment, which Citi believes could benefit Coinbase in its ongoing lawsuit with the SEC.
In addition to the political and regulatory shifts, Citi noted the increasing user figures of Coinbase’s layer-2 network Base and the potential launch of spot Ether （ETH） ETFs as additional streams of income for the crypto exchange.
The investment bank emphasized that along with industry exposure, COIN could benefit from a potential catch-up in the US crypto market compared to higher on-chain activity and liquidity developed abroad.
解説
- Political landscape: The potential for a crypto-friendly administration with Trump’s campaign is seen as a positive catalyst for Coinbase.
- Supreme Court decision: The overturning of the Chevron Defense Doctrine could benefit Coinbase in its legal battles with the SEC.
- Market opportunities: Increasing user figures for Coinbase’s layer-2 network and the potential launch of spot Ether ETFs are seen as additional income streams.
- Positive outlook: Citi’s upgrade reflects confidence in Coinbase’s ability to navigate the shifting political and regulatory environment and capitalize on new market opportunities.