Coinbase Global, Inc. (NASDAQ:COIN) Stock Upgrade: Neutral to Buy

Coinbase Global, Inc. (NASDAQ:COIN) is a financial services company that operates a cryptocurrency exchange and manages digital assets.

Coinbase Global, Inc. (NASDAQ:COIN) Class A shares are currently trading up in Friday's morning session following a bullish note from Monness, Crespi, Hardt & Co., Inc.. The firm upgraded the stock to a ‘Buy’ from a ‘Neutral’ and reiterated a $300 price target.

The upgrade follows Q2 guidance from Coinbase (NASDAQ:COIN)suggesting a revenue total of $600 million to $680 million from subscription and services. The Monness, Crespi, Hardt & Co., Inc. analysts feel that this guidance is far too conservative. They are optimistic that Coinbase will generate more revenues given the strength of the underlying assets, especially Ethereum and Solana.

The firm's analysis highlights that as of May 13, Coinbase stock had an upside potential of 17.18%.

Coinbase: A Beacon of Crypto Integration

Coinbase is a financial services company that operates a cryptocurrency exchange and manages digital assets. It provides consumers with the primary financial account in the crypto economy and offers a brokerage platform with a liquidity pool across the crypto marketplace for institutions.

The company's integration into the S&P 500 earlier this year marked a significant milestone, making it the first crypto company to be included in the index. This inclusion is expected to be a substantial catalyst due to the increased institutional demand and support that Coinbase stock is likely to receive.

"There’s some validation here. We have Coinbase’s inclusion in the S&P reinforces the idea that crypto isn’t just a niche market," remarked Kristin Smith, the head of the crypto advocacy group Blockchain Association.

However, despite the optimism, Coinbase has faced challenges in recent months. The company's earnings have been declining, and its stock price has fallen sharply from its highs.

Nonetheless, Monness, Crespi, Hardt & Co., Inc. believes that Coinbase is well-positioned for growth in the long term. The firm is particularly bullish on the company's new products and services, which it believes will drive demand for Coinbase's platform.