Goldman Sachs Ends Bearish Stance on Coinbase, Upgrades to Neutral After Fivefold Surge Following Downgrade
After experiencing a five-fold increase, Wall Street giant Goldman Sachs (GS) has finally announced the end of its bearish stance on the exchange Coinbase (COIN) after nearly two years, upgrading its rating from sell to neutral.
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Goldman Sachs upgrades COIN to neutral rating
COIN has risen over five times since Goldman Sachs downgraded it
Goldman Sachs upgrades COIN to neutral rating
According to Coindesk, Goldman Sachs announced the upgrade of COIN rating in a report on the 7th of this month, raising the target price from $170 to $282. COIN closed at $256 on the 8th.
Analysts attribute COIN’s surge to the significant increase in cryptocurrency prices and Coinbase’s ability to consistently generate profits in both bull and bear markets. In addition to generating more revenue for the platform through the rise in token prices, Coinbase has maintained its market share and focused on controlling expenses and profitability in all market environments. Furthermore, the interest sharing of USDC reserves by Coinbase has also contributed to the significant increase in its stock price.
However, analysts led by Will Nance remain skeptical about COIN’s long-term performance:
“We still observe limited actual applications of cryptocurrency, but the price volatility has clearly exceeded the potential excess returns, and over time, retail adoption rates have not increased.”
COIN has risen over five times since Goldman Sachs downgraded it
According to reports, Goldman Sachs downgraded COIN to a sell rating on June 17, 2022, and since then, COIN has achieved a 450% increase. However, Goldman Sachs did anticipate COIN’s historical low, which dropped to $31.55 on January 6 last year.
As of now, COIN’s historical high remains the $429 it reached on its first day of listing in April 2021.
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Further reading:
Cryptocurrency market overheats, Coinbase crashes twice a week, app store rankings soar
US court rules on Coinbase insider trading case: Cryptocurrency asset sales in the secondary market are considered securities transactions.
