Summary
- Bank of America said it upgraded its rating on U.S. cryptocurrency exchange Coinbase to 'Buy.'
- Bank of America said the upgrade was driven by an accelerating expansion of its business portfolio, a strategic pivot, and attractive valuation.
- Bank of America views Layer 2 blockchain Base as a key growth driver and set a $340 price target, implying about 39% upside from current levels.
Global investment bank (IB) Bank of America (BofA) has upgraded its rating on U.S. cryptocurrency exchange Coinbase.
According to Walter Bloomberg on the 8th (local time), Bank of America raised its rating on Coinbase to 'Buy' on the day. Bank of America cited an accelerating expansion of its business portfolio, a strategic pivot, and attractive valuation as reasons for the upgrade.
In particular, Bank of America pointed to Coinbase’s expansion into equities, prediction markets and exchange-traded funds (ETFs). It also identified Coinbase’s Layer 2 blockchain, Base, as a key growth driver.
Bank of America set a $340 price target for Coinbase, about 39% above the current share price (around $245). The bank said Coinbase’s price-to-earnings ratio (PER) has fallen about 40% since mid-2024, easing valuation concerns.
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