Thursday, September 29, 2022

Coinbase Stock is Grossly Undervalued – Oppenheimer Analyst

An analysis of Oppenheimer, as presented by Owen Lau, a research analyst for the financial services firm in a note to clients has revealed that Coinbase Ventures, the investment arm of Coinbase Global Inc has hidden value that is fated to translate to the parent company. According to a report published on Monday, the results of the research show that investors are yet to factor in the potential value of the crypto exchange’s venture.

While the trading firm is yet to benefit from the financial contributions of Coinbase Ventures, the report noted that the venture remains an integral part of the bigger company. 

The analysis presented by Owen further pointed out that Coinbase Ventures, known for investing in crypto start-ups, contributes to the wider crypto sphere and provides tech knowledge in the use of digital assets, making it “strategically important.”

According to Lau, the estimated fair value of the portfolio of Coinbase Ventures is currently at $6.6 billion. The analysis also showed that in the Q4 of Coinbase in 2021, the crypto exchange firm had invested in more than 250 startups summing up to a value of $352 million on the basis of cost.

Further in the report, Lau writes that the sensitivity analysis of Oppenheimer projects that the market value of Coinbase Ventures may reach an all-time high of $17 billion, predicting “a 13% ownership stake” on the blockchain outfits it has a stake in. The estimated figures in this analysis are believed to even skyrocket, considering the “continuous capital influx to blockchain/digital assets.”

According to the report, the stock price of Coinbase is currently down to about $151 per share, however, Lau predicts in the analysis that the price could go as high as $377, adding that the increase is dependent on and closely knitted to the price of Bitcoin (BTC) as well as macroeconomic factors.

Coinbase earlier this month was on the headlines. The crypto exchange took a strong stance against blocking the access of Russian users to its platform as a result of the assault of Russia against Ukraine. 

The CEO of Coinbase however in a report said that until the United States emphatically bans the services of crypto to Russia, its platform remains open to its users in the country. 

 

Israel Love
Israel Love is a passionate writer that enjoys educating and inspiring people through his writing. This passion fuels the desire to simplify the complexities in the blockchain ecosystem, by providing viable information about the crypto space in such a way that makes it easy for anyone to understand. Israel love also has interests in Human Resource Management as he is a trained expert in HR.

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