Needham & Company Upgrades Coinbase Valuation Estimate as Bitcoin Is Still in its Early Years

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Needham & Company raised its price target for Coinbase (NASDAQ:) to $160 from $120 per share in a report Tuesday, while continuing to recommend the stock as a buy.

Analysts said that indicators related to retail cryptocurrency transactions suggest that the upward trend is still in the initial phase. The firm considers Coinbase a compelling investment to benefit from the expanding cryptocurrency market.

“The level of retail involvement in cryptocurrencies is significantly lower than in previous years and, despite the recent price rise, the reaction has been relatively muted. Our analysis shows that the most reliable predictors of the position of cryptocurrencies and NPCs in the economic cycle range from a lack of interest on the part of individuals to extreme enthusiasm. Currently, the interest of individuals corresponds more to a lack of interest,” explain the analysts.

“Google Search Trends data indicates that the term “Crypto” is searched as frequently today as in July 2023 and approximately 50% less than average in 2022,” they continued. “Coinbase’s position in the app stores is ranked at number 24 today for financial apps, up from number 28 in September 2023, number 9 in February 2022, and number 1 in October 2021.”

Analysts also observed that the number of visits to cryptocurrency websites in October 2023 is lower than in July 2023. However, they pointed out that the dominance of Bitcoin is near the highest levels of 2023, which which suggests that significant investments have not been directed into alternative cryptocurrencies, “which is an event that typically occurs in the middle or late stages of the economic cycle.”

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