Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Political tide is turning positive for crypto, seen as a 'significant catalyst' for Coinbase

Published 2024-05-22, 10:52 a/m
© Reuters
COIN
-
HOOD
-

Analysts at JMP Securities believe political tides appear to be shifting for digital assets, which, if sustained, will represent a significant catalyst for Coinbase (NASDAQ:COIN) and others.

In a note to clients Wednesday, the investment firm reiterated a Market Outperform rating and $320 price target on Coinbase shares, with the target reflecting an ~11x EV/revenue multiple on JMP's 2025E revenue expectation.

"Over the past week, several notable events have developed around the digital asset industry that we estimate could create further catalysts for the broader space and in our coverage universe, could add to the positive momentum at Coinbase and, to a lesser degree Robinhood (NASDAQ:HOOD, MO, $30 PT), albeit still positive overall," wrote analysts at JMP.

They caution that, it is not completely clear yet the degree political winds are structurally shifting, although the firm notes that momentum has clearly moved closer toward bipartisanship with SAB 121 repeal resolution passing the House and Senate last week.

Analysts also highlight other developments in recent days, including "the SEC's apparent about-face on spot-ETH approval."

At the very least, analysts believe these developments individually have positive implications, and if the tide has truly shifted politically, they think the implications for the industry are transformative in the U.S., accelerating its move into the mainstream and creating a springboard for exponential expansion," adds JMP.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.