Coinbase stock has upside to $70, analyst says

• Atlantic Equities upgraded Coinbase Global to “overweight” on Tuesday.
• Analyst Simon Clinch explained why in a research note to clients.
• Coinbase stock is already up more than 80% versus the start of 2023.

Coinbase Global Inc continues to be the “best expression of crypto”, says Simon Clinch – an Atlantic Equities analyst.

Coinbase stock could gain 20%

On Tuesday, Clinch upgraded the crypto exchange to “overweight”. His $70 price target suggests a close to 20% upside from here.

He’s bullish on the Coinbase stock partially because the company has topped expectations in terms of executing cost cuts. The analyst agreed that risks including regulation and recession remain on the table but said in his research note:

These actions are building resilience in the business model . . . Coinbase’s recent actions allow investors to look through toward the longer-term opportunity.

Year-to-date, the Nasdaq-listed firm is already up more than 80% at writing.

Coinbase had a strong first quarter

Coinbase has recently launched a Bermuda-based exchange that, at least for now, is limited to non-U.S. institutional users interested in Bitcoin and Ethereum perpetual futures.

Earlier in May, the crypto exchange also reported its financial results for the first quarter that handily topped estimates as Coinbase Prime noted record volumes. According to Atlantic Equities’ Clinch:

Coinbase is regaining custody asset share and is also leveraging its trust credentials to exercise pricing power – both important steps towards building resilience in the model.

Those interested in buying Coinbase stock today should remember, though, that this crypto firm received a “Wells Notice” from the U.S. Securities and Exchange Commission (SEC) in March.