Along with stocks in general and crypto markets in particular, it’s been a rough few weeks for Coinbase (COIN), its shares sporting a decline of about 30% since mid-February and a 40% drop since hitting a 52-week high in early December.
Investment firm Rosenblatt spies opportunity, saying investors will benefit from buying the dip as the exchange remains set to profit from the Trump administration’s pro-crypto stance.
“COIN is the clear blue chip in the sector and should be a beneficiary of multiple positive tailwinds,” Rosenblatt analyst Chris Brendler wrote, initiating coverage of the crypto exchange with a buy rating and $305 price target. “COIN has also proven its ability to navigate both Bull and Bear markets and with the growth in non-trading revenue, we believe the stock will prove more resilient in the next Crypto Winter.”
“Fortunately, we think it is more of a ‘Crypto Spring’ right now and like the stock here after the pullback,” he added.
Brendler attributes COIN’s recent declines as a result of on-again, off-again tariffs imposed by President Donald Trump in addition to broader political uncertainty, which have sent risk markets lower across the board of late.
COIN nevertheless, reminds Brendler, remains a dominant player in the industry thanks to its strong brand, deep liquidity, and superior user experience.
“Regulatory clarity will attract more TradFi players into crypto, but COIN’s decade-plus head start and comprehensive product suite position it to maintain market leadership,” he added.
Alongside another difficult day in markets, COIN is lower by 1% to $211 on Friday. The Nasdaq is down 1.4%, the S&P 500 lower by 1.1% and bitcoin is off 3.5% to $87,000.