Markets
Coinbase Global Upgraded to Neutral on BofA in Crypto and Diversification Market (NASDAQ:COIN)
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- Coinbase Global (NASDAQ:COIN) shares rose 2.4% in Friday pre-market trading after Bank of America Securities upgraded the cryptocurrency exchange from Underperform to Neutral due to the company’s expense discipline and diversification strategy combined with a improved cryptographic perspective.
- “The current macro environment has been positive for cryptocurrency market cap appreciation and trading volume,” BofA analyst Mark McLaughlin wrote in a note to clients.
- At the company level, he highlights that Coinbase’s operating leverage (COIN) major cost cuts in 2022 will help maintain profitability in the future. Furthermore, “greater diversification of revenue sources less correlated with global volumes should mitigate earnings volatility”.
- The counterweights are from Coinbase (COIN) reliance on transaction revenue for profitability and regulatory overhead related to its ongoing SEC lawsuit.
- McLaughlin’s Neutral rating on the stock is in line with the SA Quant ClassificationO average SA analyst ratingand the average Wall Street ratingall in Hold.