Shares of Coinbase Global Inc. COIN, -2.21% rose 1.8% in premarket trading Wednesday, after Oppenheimer analyst Owen Lau said he was a little more bullish on the cryptocurrency trading platform, citing expectations of strong second-quarter results.
Lau reiterated the outperform rating he’s had on Coinbase since he initiated coverage two months ago, but raised his stock price target to $444 from $434, with the new target implying an 89% gain from Tuesday’s closing price of $235.41. “Based on our tracker and analysis, we estimate [Coinbase] will post another record quarter in trading volume, revenue, verified users and MTU [monthly transacting users],” Lau wrote in a note to clients. The company is projected to report second-quarter results on or about Aug. 12. He believes management will continue to increase contributions from recurring revenue and altcoins, as the company should gradually reduce its reliance on bitcoin after adding dogecoin, polkadot and others. “We continue to see a sharp dislocation between [Coinbase’s] fundamentals and its valuation and believe the current price offers an attractive entry point for long-term investors,” Lau wrote. The stock, which went public on April 14, has gained 1.7% over the past month through Tuesday, while bitcoin BTCUSD, 2.35% has tacked on 3.4% and the S&P 500 SPX, -0.20% has advanced 2.8%.