BofA Global Research upgraded Coinbase stock to "buy"
The shares of Coinbase Global Inc (NASDAQ:COIN) are down 1.5% at $230.43 this morning, despite an upgrade from BofA Global Research to "buy" from "neutral." The analyst commended Coinbase on its revenue diversification, and added that this trend could accelerate into this year and beyond. The firm also lifted its fourth-quarter net revenue forecast to $1.44 billion, citing app download growth.
The upgrade initially helped COIN work off some of yesterday's selloff, sparked in part by the release of the Federal Reserve's meeting minutes, but ultimately the broader cryptocurrency space is weighing too heavily on the stock. It looks like the $230 level could serve as a potential floor for COIN going forward, though the 20-day moving average still looms as resistance. Plus, in the past six months, the stock has lost 7%.
Analysts are still hopeful that Coinbase stock can stage a rebound. Coming into today, 12 of the 17 in coverage called the equity a "buy" or better, with five "hold" ratings, and one "strong sell" recommendation on the books. Plus, the 12-month consensus price target of $392.25 is a hefty 67.5% premium to current levels.
Meanwhile, calls have been outnumbering puts at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This is per COIN's 50-day call/put volume ratio of 1.75, and its 10-day call/put volume ratio of 1.31.