Goldman Sachs publishes a new note in which it expects bullish trends, or a bull run, for the Coinbase Stock Token (COIN) for the next quarter.
According to reports , the Wall Street banking giant called Coinbase a “top 25 tactical trading” , and explained how, despite the significant volatility of crypto assets, the platform continues to produce its profits.
In essence, Goldman Sachs cites Coinbase COIN’s buy rating as a paradox that could help bring greater earnings for Coinbase.
The investment bank researchers, in fact, point out that although Bitcoin has fallen and remains at $ 30,000 instead of the precious $ 60,000 seen this year, the boom in trading volume also on Coinbase has not stopped . And, consequently, neither is the continuous flow of commissions that Coinbase has obtained from the business.
That’s why Goldman Sachs’ forecast for the next quarter is about a bull run (or bullish trend) for COIN.
Probable Accumulation of Coinbase (Coin) coming soon
In the note of July 8, 2021, Will Nance, the online brokerage analyst , is highlighted , who specified as follows:
“Investors turned off by COIN’s post-listing crash – shares have fallen more than 25% from peak – may begin to re-engage in the coming quarters.”
In practice, Nance does not rule out an accumulation of COIN for the next quarters , which would inevitably lead to an increase in the price and therefore to its bull run.
Overall, the analyst at Goldman Sachs has estimated that earnings per share for Coinbase is 11% above consensus for the following year . This means that his view is significantly more bullish than that of Wall Street.
But this isn’t the first time Goldman Sachs has expressed its positive views on COIN’s trend. Already last May 2021, there was talk of a quotation for Coinbase (COIN) of + 35%.
Even in that case, just like now, COIN shares have been targeted by the banking giant’s analyst reports after a 25% collapse, with analyzes that predict (just like now) a completely bullish trend.
Only on Monday afternoon, Coinbase was trading at a price of -2.5%, that is, at $ 248 per share.
On the other hand, Goldman Sachs is also one of the largest investment companies in the world which led the preparations for Coinbase ‘s direct offer last April, when the company went public on the Nasdaq.