This crypto stock could climb 80% despite FTX fiasco: Oppenheimer
Coinbase Global Inc (NASDAQ: COIN) down about 80% year-to-date remains a “buy” despite the recent FTX collapse, says Owen Lau. He’s a Senior Analyst at Oppenheimer.
Coinbase is somewhat insulated from the FTX situation
Lau remains bullish on the crypto exchange since it has minimal exposure (about $15 million) to FTX and “zero” exposure to FTT (FTX token) and Alameda Research (FTX sister company).
His price objective of $89 on the Coinbase stock represents about an 80% upside from here.
The visibility of Coinbase generating positive adjusted EBITDA in 2023 has increased, and its ability to diversify and generate non-trading revenue is still underappreciated.
Lau is convinced the rising rates will eventually be a net positive for Coinbase as they help boost its interest income. He also recommends buying Coinbase stock because that part of the story is not priced in.
Cathie Wood also remains bullish on the Coinbase stock
Last week, Coinbase said its profit and revenue came in shy of the Street estimates in the fiscal third quarter. But that, even when put together with the FTX situation, is not enough to scare off Cathie Wood.
The influential investor, on Thursday, loaded up on 237,675 shares of Coinbase. That’s on top of over 400,000 shares she bought on the pullback earlier this week.
Majority of those shares were bought in the ARK Innovation ETF; though the Next Generation Internet and Fintech Innovation exchange-traded funds contributed a little as well.
Wood’s flagship ETF is up 10% today on a better-than-expected CPI print for October (find out more). Sticky inflation and an aggressive Fed has been a pain for her so-called “disruptive tech” stocks this year.
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