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Coinbase stock was upgraded from underperform to market perform at Raymond James.
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The company stated that spot Bitcoin ETF flows are having a positive impact on the cryptocurrency's valuation.
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Goldman Sachs last week revised its negative rating on the stock.
Investment bank Raymond James is the latest Wall Street firm to revise its negative rating on cryptocurrency exchange Coinbase (COIN) stock due to the rise in exchange-traded funds (ETFs). inflow It triggered a rise in stock prices, and Bitcoin {{BTC}} rose to an all-time high.
Raymond James said the firm's long-term bias towards Coinbase remains negative, but that the firm underestimated the impact of spot ETF inflows on the valuation of cryptocurrencies, particularly Bitcoin. admitted.
Raymond James raised the stock from underperform to market perform. Coinbase stock closed 0.8% higher at $256.14. The changes and explanations are included in the investigation report released Tuesday.
Despite the upgrade, the company remained cautious.
“The company’s long-term earnings outlook remains highly questionable given what we view as an inherently commoditized customer offering and the volatile long-term earnings outlook for crypto valuations.” This seems to be mainly based on the evaluation of virtual currencies.” great fool theory rather than its intrinsic value or significant regulatory risk,” analysts led by Patrick O'Shaughnessy wrote.
“The longer this crypto rally continues, the more likely it is that competitors will attack Coinbase with disruptive pricing strategies,” the authors write.
Positive momentum in stocks is likely to continue until ETF flows taper or reverse, the report added.
Wall Street investment bank Goldman Sachs last week abandoned its bearish stance on Coinbase stock, upgrading the stock from sell to neutral, citing rising crypto prices and increased retail participation.
read more: Coinbase upgrades to neutral as Goldman Sachs ends bearish stance
