Coinbase’s (COIN) Bier than expected results in the second quarter triggered a sharp Friday sale, but Wall Street broker Benchmark says Drop is a purchase option, not a red flag.
Analyst Mark Palmer repeated his purchase rating and $ 421 price targets. He argued that the stock exchange’s long -term investment case remains intact as the company continues to build basic cryptoinfrastructure.
The shares are 1.8% higher in early trade Monday, after closing 16.7% lower on Friday.
Benchmark highlights five catalysts that support its dissertation. First, Coinbase’s revenue sharing agreement with a circle on USDC reserves it to take advantage of stablecoin resolution, especially after the United States passed the Genias Act.
Secondly, its institutional offerings, including primary broker, crypto-a-service and derivatives, are well timed because the Law of the Clarity can encourage further adoption.
Third (Nfts)decentralized financing (Defi) And developer tools, a unique product in the US market.
Fourth, the integration of decentralized exchanges extends token access in addition to centralized lists.
Finally, Coinbase’s estimated $ 360 million signalizes transaction revenue, a 44% jump from its monthly average in the second quarter, a potential recovery in crypto activity.
Benchmark concludes that the quarter’s miss is short -term noise. Coinbases developing platform, supported by regulation of wind winds and increased institutional demand, points to long -term growth.
Read more: Coinbase wears nearly 20% in worst weekly performance since September 2024
