Cornerbase (COIN) The more soft than expected results in the second quarter sparked an acute Friday sale, but the Wall Street Benchmark broker claims that the decline is a buying opportunity, not a red flag.
Analyst Mark Palmer reiterated his purchase rating and price target of $ 421. He argued that the long -term investment case of the exchange remains intact while the company continues to build a fundamental cryptography infrastructure.
The shares are higher 1.8% at the start of negotiations on Monday, after closing 16.7% less on Friday.
Benchmark highlights five catalysts supporting his thesis. First, the Coinbase income sharing agreement with Circle on USDC reserves it positions it to benefit from the adoption of stablescoin, especially after the United States has adopted the Act on Engineering.
Secondly, its institutional offers, including the prime brokerage, crypto-as-a-service and derivatives, are well incurred because the clarity law can stimulate additional adoption.
Third, the company is developing a “super application” crypto integrating trading, payments, non -buttocks (Nft)decentralized finance (Challenge) And developer tools, a unique product on the American market.
Fourth, the integration of decentralized exchanges extends access to bows beyond the centralized lists.
Finally, the 360 million dollars estimated in Coinbase in July, a leap of 44% compared to its monthly average during the second quarter, indicates a potential recovery of cryptographic activity.
Benchmark concludes that the lack of quarter is noise in the short term. The evolutionary Coinbase platform, supported by the regulation of tail winds and the increase in institutional demand, indicates long-term growth.
Find out more: Coinbase slips almost 20% in the worst weekly performance since September 2024
