Goldman Sachs Analyst Initiates Coinbase Coverage With Buy Rating

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In Brief
  • Analyst Will Nance initiates coverage of Coinbase Global with a buy rating.

  • Nance set price target for Coinbase at $306, a 36% upside potential.

  • Coinbase hires another former government official to join their team.

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Goldman Sachs analyst Will Nance has initiated Coinbase Global coverage with a buy rating.  

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On Monday, analyst Will Nance gave Coinbase a buy rating and stated that COIN is a great way to gain exposure to cryptocurrency ecosystems. Coinbase went public on April 14 via direct listing and, despite an initial rush, has seen shares struggle, over the last month. On the first day of trading in April, the stock eclipsed $400 but as of last week, had dipped below $225.  

Coinbase gets a buy rating from Goldman Sachs

Godman Sachs states that Coinbase Global could soon surge as much as 36%, to over $300. Despite this confidence, Goldman Sachs still admits that much of Coinbase’s trajectory long-term will be up to the success of cryptocurrencies as an asset class. Coinbase does represent “a blue-chip way through which to invest in the development of the ecosystem.”

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Additionally, Goldman Sachs sees Coinbase Global as a leading consumer platform, with strong customer trends and most importantly, a rapidly growing institutional presence. Another reason for the “buy” rating is that Goldman Sachs believes that crypto volatility creates an attractive business model for Coinbase.

That market volatility has been front and center over the last two weeks, after Tesla decided to stop accepting bitcoin (BTC) as payment. China’s continued move toward restricted crypto activities is also a contributing factor. The final reason for this rating, according to Nance, is that Coinbase brings a significant opportunity to add more features and capabilities in the near future. 

“While we believe the core business today offers an attractive growth profile with the potential to drive new high levels of profitability, we see significant white space for new initiatives to drive more stable and recurring revenue streams to complement the core trading business over the longer term,” the Godman Sachs analysts said.

Former White House staffer hired as CPO of Coinbase

In other Coinbase Global news, the company has appointed Faryar Shirzad as their new chief policy officer. The former White House official joins the company against the backdrop of scrutiny and regulations on cryptocurrencies increase globally.

Shirzad previously served as the Deputy National Security Advisor for International Economic Affairs at the White House. Additionally, he was the global co-head of government affairs at Goldman Sachs for 15 years. Before that, Shirzad was the assistant secretary for import administration at the U.S. Department of Commerce. 

 
Shirzad is not the only former government official that Coinbase has hired recently.  In March, the company named Brett Redfearn as their new vice president of their capital markets division. Redfearn was formerly the director of the Securities and Exchange Commission.

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Matthew De Saro is a journalist and media personality specializing in sports, gambling, and statistics. Before joining BeInCrypto, his work was featured on Fansided, Forbes, and OutKick. With a background in statistical analysis and a love of writing, he takes an outside-the-box approach to reporting news.

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