Coinbase Global Stock Bounces Bank on Wedbush Coverage

The equity has been trending lower since going public in April

Digital Content Manager
May 20, 2021 at 10:17 AM
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As bitcoin recovers from yesterday's plunge to a four-month low, cryptocurrency exchange platform Coinbase Global Inc (NASDAQ:COIN) is up 3.2% at $232 at last check. The positive price action comes after Wedbush initiated coverage of COIN with an "outperform" rating and $275 price target, calling it a "one-stop shop" for crypto. The firm noted the company has a first mover advantage, as well as more crypto assets on its platform, which enables cryptocurrency to be a part of the payments ecosystem.

Just yesterday, Coinbase Global stock dropped to an all-time low of $208, in response to bitcoin's sharp selloff. The equity first went public in mid-April, with an initial public offering (IPO) price of  $250, but has been trending lower since. Month-to-date, COIN has shaved 24.5%. 

Despite this negative price action, the brokerage bunch is still optimistic towards Coinbase Global stock. Six of the 10 analysts in coverage call COIN a "strong buy," while four carry a tepid "hold" rating. Plus, the 12-month consensus target price of $408.36 is a whopping 75.3% premium to current levels.

Drilling down to today's options activity, 8,067 calls have already crossed the tape, which is twice the intraday average. Most popular is the monthly May 250 call, suggesting call traders are staying optimistic that the equity will continue to climb before the contract expires at the end of the day tomorrow.

 

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