The Crypto industry is expected to join the financial mainstream in the United States as the regulatory environment is improving and Coinbase (Coin) is well placed to take advantage of these tailwinds, broker Bernstein said in a report Monday.
Bernstein began covering the crypto exchange with a better rating and a price target of $ 310. About 41% of Wall Street analysts have a purchase rating on the stock, 7% seller and the rest holder, according to Factset data. The shares dropped 2% to $ 185.20 in early trade.
Regulatory clarity will result in more competition for coin base from fintech companies, brokers and banks, the report says.
Still, a “strong bull market and rising us on land -dominance” is expected to be more than equalizing market share and price presses, wrote analysts led by Gautam Chhugani.
An improved regulatory background under Donald Trump’s new administration is considered a huge tailwind to digital assets, and the president has promised to make the United States a “crypto capital in the world.”
Securities and Exchange Commission (SEC) has formed a new crypto -Taskforce led by Commissioner Hester Peirce to prepare new rules for the industry.
Coinbase has done well with diversifying beyond trade, the report says, and the stock exchange now has a strong presence in the US Dollar StableCoins and crypto output services, such as stack.
Bernstein said it expects Coinbase to grow non-trade income by about a 31% compound annual growth rate (CAGR) between 2024-2026.
This gives a “strong balance to cyclicality in trade revenue,” the report added.
Coinbase recently secured FIU registration and paved the way for a return to the Indian market, the company said in a blog post earlier this month.
Read more: Coinbase plans India comeback after securing regulatory registration with FIU
