This outcome should moderately de-risk the regulatory pressure on the stock, Needham analysts said in a research report Friday, noting that this was a significant overhang on Coinbase (COIN) share price. The broker maintained its buy rating on Coinbase shares and raised its price target to $120 from $70. Coinbase shares were trading 1% lower at $105.96 in premarket trading Friday, after closing 25% higher on Thursday following the Ripple court ruling.
Needham said recent bitcoin (BTC) exchange-traded-fund (ETF) applications from major traditional finance institutions that are using Coinbase for various services gives us further comfort regarding broad support for the ecosystem and Coinbase. The broker also modestly raised its second-quarter 2023 earnings estimates for the crypto exchange, but cautioned that a further decline in retail trading would result in poor volumes for the quarter.
In contrast, German investment bank Berenberg wrote Thursday that the rally in Coinbase shares following news of the court’s decision was unwarranted.