JPMorgan (JPM) has upgraded the stock of cryptocurrency exchange Coinbase (COIN) to neutral, reflecting the recent surge in crypto prices. approval The proportion of spot Bitcoin (BTC) exchange traded funds (ETFs) in the US was revealed in a research report on Thursday.
Rising crypto prices are expected to boost activity levels and Coinbase's profitability in the first quarter, according to the report.
The Wall Street giant kept its price target at $80 and raised the stock to Neutral from Underweight.
Coinbase shares rose 6.5% to $170.80 in pre-market trading. Other crypto-related stocks also rose as Bitcoin, the world's largest cryptocurrency, traded near its recent high of $52,400. MicroStrategy (MSTR) rose 3% and Marathon Digital (MARA) rose 3.5%.
The approval of the Spot Bitcoin ETF was initially a sales event, but “has now turned into a meaningful Bitcoin rally,” the bank said.
Analysts led by Kenneth Worthington believe that this Bitcoin rally is contributing to improved spot Bitcoin ETF flows, which in turn drives up Bitcoin prices and other tokens as well. “
The bank warned that Coinbase stock could underperform in 2024, based on its valuation analysis, after the stock rose nearly 400% last year.
“While we are not recommending this stock yet, we appreciate the enthusiasm and resulting activity that the US Spot Bitcoin ETF has injected into the crypto ecosystem and the impact it has taken us out of the 2022 crypto winter.” “We are aware of the trading volume,” the report added.
The company reports income After closing today.
