Bank of America has upgraded its rating on Coinbase shares from underperform to neutral, while also increasing its price target for the cryptocurrency exchange. The upgrade reflects a positive outlook for Coinbase and its commitment to expense discipline and diversification. Bank of America cited the favorable macro backdrop that has supported the cryptocurrency markets and increased trading volumes as factors contributing to the upgrade. However, the analysts also acknowledged potential risks, such as Coinbase’s reliance on transaction revenue for profitability and the ongoing lawsuit with the SEC, which could impact the company’s operations. Despite these concerns, Coinbase’s stock price rose following the announcement. In addition to Bank of America, KBW has also increased its price target for Coinbase, recognizing the unique opportunity it offers investors to tap into the long-term growth potential of the crypto economy. Meanwhile, Coinbase continues to face regulatory trouble, as the SEC’s lawsuit against the company has been allowed to proceed by a US District Court judge. Former Assistant U.S. Attorney Kathryn Haun has also stepped down from Coinbase’s board.
