DA Davidson analyst Gil Luria said last week that Coinbase's "spectacular" earnings provided a "terrific setup" for a direct listing
Bitcoin services provider and marketplace operator Coinbase (COIN) made its public market debut on Wednesday via a direct listing on the Nasdaq exchange, opening for trading at $381. The direct listing reference price was $250. The shares climbed as high as $429 during the session, valuing the company at $112B, before dropping below their debut price. On Tuesday, MoffettNathanson analyst Lisa Ellis had initiated coverage of Coinbase with a Buy rating and a $600 price target.
BULLISH ON COINBASE: A day before the stock started trading on the Nasdaq, MoffettNathanson analyst Lisa Ellis initiated coverage of Coinbase with a Buy rating and $600 price target. Ellis told investors in a research note that she views Coinbase as a "leading technology infrastructure provider for the cryptocurrency ecosystem" and is bullish since she sees the stock as "an extraordinarily rare asset" given it is the only U.S. large-cap stock that offers pure-play exposure to the development of the crypto economy. Furthermore, the analyst pointed out that Coinbase has differentiated capabilities in crypto technology, superior regulatory positioning, and a strong brand.
'TERRIFIC SETUP' FOR DIRECT LISTING: In a research note last week, DA Davidson analyst Gil Luria raised his price target on Coinbase to $440 from $195, while reiterating a Buy rating on the shares. The analyst highlighted that Coinbase reported preliminary first quarter results that far exceeded his expectations as Bitcoin trading volumes held up better than Luria had expected through March 31, while expense line items were lighter than his forecasts. The analyst told investors that he continues to believe Coinbase's product experience and best-in-class compliance and regulatory controls should provide a defensible moat. "Spectacular earnings provide terrific setup for direct listing," Luria said at the time.
PRICE ACTION: In afternoon trading, shares of Coinbase are up about 46% from the $250 reference price at $363.53.