Coinbase Bear Thesis Is ‘Way Overblown,’ Oppenheimer Says

The bearish outlook against Coinbase (COIN) is “way overblown,” Oppenheimer equity analyst Owen Lau told clients in a Monday research note.

• Bearish points towards Coinbase, the Oppenheimer note says, include the notion that the crypto exchange is facing higher competition and fee compression, that its stock is being overvalued and that a lack of profitability this year is cause for concern.
• Oppenheimer noted that the longer-term trend of crypto adoption is overlooked by the bears. Meanwhile, on profitability, Lau said Coinbase can reduce its investment plans under a “material slowdown” scenario.
• The analyst sees pending positives from global expansion, derivatives trading and the launch of Coinbase’s non-fungible token (NFT) segment.
• Lau maintained an “outperform” recommendation but lowered Oppenheimer’s COIN price target from $377 to $314.
• Goldman Sachs recently said it sees Coinbase posting total Q1 trading volumes of $302 billion, a sizable decline from $547 billion in Q4.
• COIN is trading hands at $142 at press time.

Read more: Coinbase’s NFT Strategy Questioned by Mizuho Analyst