Barclays gives Coinbase a Hold-Equivalent Rating for Crypto Regulatory Risk

By: Henry Felix

Barclays gives Coinbase a Hold-Equivalent Rating for Crypto Regulatory Risk

August 31, 2022 8:51 AM

According to the investment bank, the exchange will continue to have challenges.

 

Initiating coverage of cryptocurrency exchange Coinbase (COIN) with an equal weight rating and a $80 price target, Barclays (BCS) analyst Benjamin Budish noted the regulatory risk and exposure to retail trading revenue.

 

Despite certain favorable catalysts, like as the Ethereum Merge and industry consolidation, challenges will continue for Coinbase, according to Budish in a note to clients on Tuesday.


Nevertheless, Budish's $80 price objective indicates a potential gain of about 20% from the $67.03 closing price today.

 

Barclays launched online brokerage Roinbhood (HOOD) with an underweight rating and a $10 price target in addition to the new Coinbase coverage, citing detrimental effects on customers from inflation and/or a probable economic recession.