Goldman Sachs has published a new note forecasting upward trends, aka a bull run, for the Coinbase Stock Token (COIN) over the next quarter.
According to the report, the Wall Street banking giant described Coinbase as a “top 25 tactical trader”, and explained how, despite the significant volatility of crypto assets, the platform continues to generate profits.
Essentially, Goldman Sachs cites Coinbase’s COIN buy rating as a paradox that could help bring in more earnings for Coinbase.
Indeed, the investment bank’s researchers point out that although bitcoin has fallen and remains at $30,000 instead of the precious $60,000 seen this year, the boom in trading volume on Coinbase has not stopped. And as a result, neither has the continued flow of commissions Coinbase has been getting from the business.
This is why Goldman Sachs’ forecast for the next quarter speaks of a bull run (or bullish trend) for COIN.
A likely Coinbase (COIN) accumulation coming soon
In the note from 8 July 2021, the online brokerage analyst Will Nance is quoted as saying:
“investors turned off by COIN’s post-listing slump – shares are down more than 25% from peak – could start reengaging in the coming quarters”.
Essentially, Nance is not ruling out a build-up in COIN for the next few quarters, which would inevitably lead to a price increase and thus its bull run.
Overall, the Goldman Sachs analyst estimated that earnings per share for Coinbase is 11% above consensus for the year ahead. That means its rating is significantly more bullish than Wall Street’s.
This is not the first time Goldman Sachs has expressed positive views on COIN’s trend. As early as last May 2021, there was talk of a price for Coinbase (COIN) of +35%.
In that case too, just like now, COIN shares were targeted by the banking giant’s analyst reports after plummeting by 25%, with analyses predicting (just like now) an entirely bullish trend.
On Monday afternoon, Coinbase was trading at -2.5%, or $248 per share.
Goldman Sachs is one of the largest investment firms in the world and led the preparations for Coinbase’s direct offering last April, when the company went public on the Nasdaq stock exchange.
The post Coinbase COIN: Goldman Sachs forecasts a bull run appeared first on The Cryptonomist.
