1 Wall Street Analyst Expects Coinbase Stock to Reach $145. Does It Sell?

As of late, Coinbase Global (NASDAQ: COIN) stock has been skyrocketing. More investors have simple access to Bitcoin, and its value has surged, benefiting the cryptocurrency trading platform.  

Because of this, one analyst last week significantly raised their price objective for Coinbase stock. Dan Dolev, an analyst at Mizuho, does not, however, recommend purchasing the stock.  

The analyst still recommends selling the stock, despite rising his firm's target price from $84 to $145. Reason being, compared to Coinbase's latest share price, the new price objective is over 40% lower.  

The wild ride of Bitcoin Following a 90% increase in value over the last three months, Dolev has significantly raised the target price for Coinbase stock. Not long ago, spot Bitcoin exchange-traded funds (ETFs) were approved by the SEC. More people are considering becoming bitcoin owners as a result of that.  

However, according to Dolev, this enthusiasm has turned into an unsustainable craze. He has raised his price target to reflect the increased number of cryptocurrency trades. Since Coinbase makes money from trading fees, the uptick in activity has been good for the company.  

While acknowledging "a favorable near-term setup," Dolev emphasized that "our long-term fundamental concerns remain." Among these worries is the possibility of "lower quality" trading of smaller crypto tokens due to competition, which could reduce fee income.  

Alesia Haas, Coinbase's CFO, admitted to Barron's that "when our stock rallies, it is a reflection of the broader sentiment around the future of crypto more than a reflection of Coinbase financials or our near-term financial performance  

The general public's positive outlook has provided Coinbase stock with a temporary lift. The fact that Coinbase isn't required for buyers of Bitcoin ETFs is another perk. Given these circumstances, it's easy to see why Dolev thinks investors should cash out following Coinbase's recent stock rise.  

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