Goldman Sachs ends bearish stance on Coinbase, upgrades COIN to neutral from sell

After experiencing a 5-fold increase, Goldman Sachs (GS) finally decided to adjust its view on Coinbase (COIN) and upgraded it from a sell rating to a neutral rating. This marks a change in the attitude of Wall Street giants towards this exchange, and also reflects the market’s gradually becoming neutral towards COIN.

Goldman Sachs raises COIN to neutral rating

According to Coindesk, Goldman Sachs announced in a report on the 7th of this month that it had raised the rating of COIN and raised the target price from US$170 to US$282.

COIN’s closing price on the 8th was $256.

Analysts attributed COIN’s gains to the sharp rise in cryptocurrencies and Coinbase’s ability to achieve more consistent profitability across bulls and bears.

Coinbase’s revenue is not only driven by rising currency prices, but also due to its success in maintaining market share and continuing to strengthen cost control and profitability. In addition, Coinbase has increased its revenue stream through interest sharing on USDC reserves. Together, these positive factors contributed to the rapid rise in the company's stock price.

However, the analyst team led by Will Nance remains cautious about COIN’s future performance. They noted that despite cryptocurrency market price fluctuations significantly exceeding expected returns, practical applications remain limited. Retail user adoption has not grown significantly over time. This implies that there are still certain obstacles in the market's acceptance of cryptocurrencies, and more time and effort are needed to promote the development of practical applications. Therefore, although cryptocurrencies such as COIN may have potential investment returns, market volatility and practical application challenges still need to be treated with caution.

COIN has increased more than fivefold since Goldman Sachs downgraded it

According to reports, Goldman Sachs downgraded COIN to a sell rating around June 17, 2022, and COIN has achieved a 450% increase since then.

However, Goldman Sachs did predict COIN’s historical low, which fell to $31.55 on January 6 last year.

As of now, COIN’s historical high is still $429 on the first day of listing in April 2021.

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