Coinbase (Coin) is more than a simple crypto trading platform, Wall Street Cantor broker said on Tuesday in a research report, initiating the coverage of the action.
Cantor assumed the coverage of the crypto exchange with an overweight note and a price target of $ 245. At the start of negotiations, shares increased by more than 5%.
“The markets are missing what it does beyond trading, in particular with its L2 relationship (base) and its stablecoin relationship with Circle,” wrote Brett Knobauch and Thomas Shinske analysts. Coinbase actions are attractive at current levels, as they are negotiated at around a 32% discount compared to the multiple historical evaluation, added the report.
The broker considers these two segments as “instrumental in the change of the story surrounding the play, to be a cyclic cryptographic trading platform to be a critical mission infrastructure of the cryptographic economy”.
The report indicates that shares should be reduced upon the investors have increased the visibility of the base of the base and the stablecoins.
The base gives Coinbase an advantage, depending on the report. The strong growth of layers of layer 2 creates a “steering wheel” which benefits the exchange of crypto with more transaction costs.
Cantor said that Stablecoin’s opportunity was also underestimated by the market, in particular given the potential of these cryptocurrencies to move the Transfrontal Funding Payment rails.
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