Goldman Sachs ends bearish stance on Coinbase, upgrades to neutral after lowering sell rating and seeing a fivefold increase

After experiencing a fivefold increase, Wall Street giant Goldman Sachs finally announced the end of its nearly two-year bearish stance on the Coinbase COIN exchange, upgrading its rating from sell to neutral.

Goldman Sachs Upgrades COIN to Neutral Rating

According to a report by Coindesk, Goldman Sachs announced an upgrade to COIN's rating on the 7th of this month, raising the target price from $170 to $282.

COIN closed at $256 on the 8th.

Analysts attribute COIN's rise to the significant increase in cryptocurrency prices and Coinbase's achievement of more consistent profitability across bull and bear markets.

In addition to increased revenue from rising coin prices, Coinbase has maintained market share and focused on cost control and profitability in all market environments. Furthermore, with interest revenue from USDC reserves, these factors have led to a significant increase in stock price.

However, analyst Will Nance and others remain skeptical about COIN's long-term performance:

We still observe limited actual use of cryptocurrencies, but price volatility has clearly exceeded potential excess returns, and retail adoption rates have not increased over time.

COIN Surges Over Five Times Since Goldman Sachs Downgraded Rating

According to a report, Goldman Sachs downgraded COIN to a sell rating on June 17, 2022, and since then, COIN has surged by 450%.

However, Goldman Sachs did anticipate COIN's historical low, which dropped to $31.55 on January 6 last year.

As of now, COIN's historical high remains the $429 on its first day of trading in April 2021.

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