After reportedly leading Coinbase’s public offering earlier this year, the giant US investment bank Goldman Sachs predicted a bright future for the exchange’s shares. In a recent report, Goldman has put up a “buy” rating for COIN and predicted a 35% increase by the end of the year.
- One of the most notable developments coming from the crypto industry so far this year was Coinbase’s plans to go public. The company indeed did so through a direct offering in April, and previous reports suggested that Goldman Sachs led the preparations.
- Interestingly, this came amid the bank’s quite controversial approach to the crypto industry. The institutions used to openly criticize all digital assets and even claimed they are not an asset class.
- Nevertheless, Goldman has been substantially more favorable towards the space, evident by several recent endeavors. Those include filing documents for a Bitcoin ETF and restarting its cryptocurrency trading desk.
- According to a recent CNBC report, Goldman has put up a “buy” rating for Coinbase’s stocks, which are down by 30% since going live on Nasdaq in mid-April.
- However, the large institution sees several main reasons why COIN will rise by the end of the year. Those include Coinbase’s ability to “bring significant opportunities to add features and capabilities,” being able to take advantage of the volatile nature of the crypto markets, providing a “leading consumer platform with strong customer trends,” and bringing leverage to “an ecosystem that is experiencing strong growth.”
“While we believe the core business today offers an attractive growth profile with the potential to drive new high levels of profitability, we see significant white space for new initiatives to drive more stable and recurring revenue streams to complement the core trading business over the longer term.” – commented an analyst from Goldman.