Coinbase Initiated With A Buy At BTIG

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BTIG analyst Mark Palmer initiated coverage of Coinbase (COIN) with a Buy rating and $500 price target.

Coinbase, the most popular consumer-facing cryptocurrency exchange in the U.S., is positioned to be a primary beneficiary of the increased adoption of bitcoin and other digital assets as it continues to scale in the U.S. and internationally, Palmer tells investors in a research note.

The analyst believes the company has "several avenues through which it could build upon its first-mover advantage as an on-ramp for mainstream crypto investors" by diversifying its revenue stream away from transaction fees and leveraging its "increasingly robust" platform for institutional investors.

Palmer's price target is based on 16-times estimated fiscal 2024 net revenue of $8.2B.