Coinbase Stock In Spotlight After BofA Sees ‘Value Unlock’ On Stablecoin Exposure

Coinbase stock is set to garner retail attention on Monday after BofA Global Research raised the firm’s price target to $397 from $259.

The new price target was higher than the stock’s previous close.

According to TheFly, BofA analysts said that Coinbase's stock multiple has increased, reflecting a "value unlock" stemming from its economic interest in the USDC stablecoin. This positive revision also incorporates the advantages of better regulatory clarity for cryptocurrency.

According to the firm, the company will share the benefits of off-platform USDC equally with its strategic partner, Circle. Circle's recent public listing has allowed investors to assess the value of this relationship at current market prices.

Last week, Benchmark analyst Mark Palmer raised the firm's price target on Coinbase to $421 from $301 based on a flurry of positive news for the cryptocurrency exchange.

The brokerage noted that "each of those headlines and announcements appeared to affirm or boost COIN's long-term growth prospects." The analyst particularly emphasized the passage of the stablecoin bill in the U.S. Senate, which will regulate digital assets typically pegged at 1:1 with the U.S. dollar.

The analyst reportedly thinks that additional, significant news supportive of Coinbase "may be in the offing, such that a path to a meaningfully higher price for the stock may be coming into view."

Retail sentiment on Stocktwits was in the ‘extremely bullish’ (88/100) territory, while retail chatter was ‘extremely high.’

Coinbase stock has risen nearly 38% this year.

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