An analyst from banking giant JPMorgan is reportedly optimistic that the crypto industry will continue to grow this year and that Coinbase will largely benefit from it.
In a note to clients, equity research analyst Kenneth Worthington predicts that crypto will become increasingly relevant to financial services in 2022.
The analyst tells investors that the applications from crypto have only started to emerge. He says that use cases will continue to grow and new projects with crypto applications will appear.
“As financial analysts, we are most excited about the implications for financial services and see the tokenization and fractionalization as holding particularly large promise as transactions speeds in crypto become more competitive with trad-fi networks.”
Worthington also gives the green light to Coinbases stock COIN. The stock of the US-based crypto exchange fell by 2% on Friday, but the analyst remains bullish and maintains a buy rating with a price target of $447.
The recommendation stems from a forecast that the crypto exchange will be a leading player in the growing digital asset space.
“With these projects attached to tokens and Coinbase a leading exchange to buy and sell tokens, we see Coinbase as a leading direct beneficiary of crypto market growth.”
Last week, Bank of America analyst Jason Kupferberg also upgraded Coinbases rating from “neutral” to “buy,” citing increased signs of revenue diversification.
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