In an interview for CNBC, DA Davidson analyst Gil Luria commented on Coinbase’s upcoming NASDAQ direct listing. Based on a recent note, DA Davidson considers a price target of $195 for the cryptocurrency exchange, based on estimated revenues for the year 2021.
“We see the upcoming Coinbase direct listing as the “Amazon moment” for crypto – the milestone point in time when the world of crypto and the traditional financial system become truly intertwined and crypto moves from a large curiosity to becoming the future path for much of the financial system,” Luria commented.
The analyst characterizes Coinbase as the current industry-champion. “[W]e believe Coinbase emerged as a leader in facilitating the on-ramp/off-ramp from government currency into crypto because of its superior user experience, security and strong compliance. We say this not just in the context of crypto, but more broadly within consumer finance. With a big target on its back as a crypto wallet, (to date) Coinbase has been able to manage both government regulators as well as highly motivated hackers, while providing consumers with the experience they expect from a large financial institution.”
While DA Davidson considers the direct listing as an “Amazon moment”, they noted that it is yet too early to know if Coinbase will really become the “Amazon of ‘crypto’”.