Compass Point Boosts Coinbase Rating Amid Bitcoin Recovery
Compass Point has upgraded Coinbase Global Inc's () stock rating to Neutral from Sell, citing expectations that Bitcoin is recovering from a cyclical bottom. The firm raised its price target to $177 from $130, noting that the stock currently trades at $175.26 with a market cap of $46.24 billion.
The analysis suggests Coinbase shares are overvalued relative to their Fair Value estimate. Analyst Ed Engel noted that Bitcoin historically trades in four-year cycles and the current cycle is tracking closely with historic norms.
Bitcoin broke through its $67,000 short-term holder cost basis, putting 65% of all holders in profit. Funding rates on perpetual exchanges have declined to low single digits, indicating leveraged long positions are not overextended.