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Canaccord Genuity sees a stronger future for Coinbase , doubling its price target on the company on the back of some wins for the crypto industry. The firm maintained its buy rating on Coinbase and hiked its forecast on the stock to $140 per share from $70, suggesting a nearly 42% upside from Monday’s closing price. “While Coinbase remains a crypto lightning rod in many respects, we cannot but see the company gaining material momentum across a variety of different fronts,” Canaccord analyst Joseph Vafi said in a Monday note. He pointed to leading asset managers recently entering into surveillance sharing agreements with Coinbase in their BTC ETF applications, as well as the recent SEC v. Ripple court ruling that secondary sales on crypto exchanges are not in violation of federal securities laws. The ruling places “further doubt” on the argument of the SEC’s case against Coinbase, Vafi said. “We like the company’s solid execution in Q1 with material cost-cutting and more focus on key parts of the business while being nicely profitable. We believe there should be follow-through momentum again in Q2,” Vafi added. Coinbase reported earlier this year first-quarter revenue that was up 22% from the prior quarter. The crypto exchange’s subscription and services revenue also came in at par with its trading revenue. Vafi said this leads him to see less volatility in the company’s business model moving forward. “With spot prices for leading cryptos such as BTC and ETH materially outperforming any other asset class, combined with a reduced cost structure, improving line of sight towards a spot BTC ETF approval, and a partially derisked SEC lawsuit following Ripple’s ruling, the overall setup here looks better than it has in a while,” he said. Shares of Coinbase have gained more than 23% this month and are up nearly 194% year to date. — CNBC’s Michael Bloom contributed to this report.
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