Citi investment bank sends a buy signal on shares on the Coinbase exchange. Citi sets a target for the stock at 30% above the current price.

Since its IPO, Coinbase stock has seen its ups and downs. These fluctuations are largely correlated with changes in the cryptocurrency market. So in May, Bitcoin and altcoins were losing 50-60%.

But since August, digital assets have been correcting their losses from previous months. This is even more true in October with multiple ATHs for tokens, first and foremost Bitcoin.

Course objective at $ 415 for COIN

The period is therefore promising for the first exchange listed on the American stock exchange, Coinbase. The investment bank Citi has also just sent a buy signal to investors.

For its analyst, Peter Christiansen, Coinbase is neither more nor less than the “big crypto store”. This is how he qualifies the exchange in a research note published on October 26, and relayed by CoinTelegraph.

Citi expects the COIN share price to rise sharply. The bank is targeting a price of $ 415. This represents a considerable progression from the current price. The title costs around $ 319.

Coinbase driven by cryptocurrency adoption

Coinbase has been in a bullish momentum on the Nasdaq since early October. On September 30, the stock was traded on the stock exchange for $ 227. How to explain such a progression?

The answer is simple: Bitcoin. The rumors surrounding Bitcoin ETFs and the BTC bull run have largely benefited the securities of listed companies linked to digital assets. This is the case for example of MicroStrategy and Square.

But Coinbase stands out even more clearly given its direct involvement in crypto. During the previous cryptocurrency bull run in Q2 2021, the exchange posted record results.

COIN, an opportunity for investors

A new bull cycle in cryptoassets should once again do business for the crypto exchange. And the expected democratization thanks to Bitcoin ETFs could also offer Coinbase a favorable outlook.

For Peter Christiansen of Citi, the COIN share is also an opportunity for investors to gain exposure to the growing adoption of cryptocurrency by individuals and institutions.

The analyst further believes that the regulation does not pose a threat to Coinbase and its market value. On the contrary :

“To some extent, we believe that the rise in regulations could be positive for Coinbase’s competitive positioning, especially compared to business models that rely primarily on unregulated markets,” Citi said.

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