Citigroup initiated coverage with a "buy/high-risk" rating
Cryptocurrency exchange concern Coinbase Global Inc (NASDAQ:COIN) is catching attention this morning, following a bull note from Citigroup. The firm initiated coverage on the crypto wallet with a "buy/high-risk" rating and a $415 price target, calling Coinbase "crypto's general store" and noting the equity's potential to benefit from the expansion of the company's offerings beyond facilitating transactions. Citi did, however, say there's risk given the volatility of the crypto market.
The analyst joins an already bullish brokerage bunch, though there's still plenty of room for additional upgrades, moving forward. Of the 17 in coverage, six still called COIN a "hold" or "strong sell," coming into today. Meanwhile, the consensus 12-month price target of $378.65 is a 16.3% premium to last night's close.
This bullishness is echoed in the options pits. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 3.06 calls have been picked up for every put over the past two weeks. Short interest, on the other hand, has shot up 43.5% in the last two reporting periods, but only makes up a slim 3.8% of COIN's available float.
Coinbase stock is up 2% at $331.99 in pre-market trading, set to open at its highest level since late-April, extending yesterday's impressive 8.2% rally. The security has been on a roll this month, up over 40% so far, no doubt thanks to Bitcoin's (BTC) recent surge.