Coinbase IPO: Can COIN Stock Really Hit $600 After Its April 14 IPO?

We’re one day out from the monumental Coinbase IPO, and price targets on COIN stock keep climbing. Investors are sitting in wait of the offering, anticipating buying into the historic moment for crypto. Meanwhile, analysts continue to clash over the price target of the popular token exchange.

A hand holds a close-up look at the Coinbase (COIN) platform.

Source: Coinbase /

Coinbase will land on the Nasdaq tomorrow, and with its monolithic 2020, a price target is becoming a difficult thing to pin down. The company pulled in a massive $1.8 billion in revenue in the first quarter of 2021. Last year, the exchange saw less than $200 million in Q1. It additionally bulked up its user base and grew its net income by hundreds of millions of dollars. The exponential growth in the last year, and particularly the last three months, is padding price targets further.

Just last Thursday, we were reporting targets in the hundreds for COIN ahead of its listing. Gil Luria of D.A. Davidson had tacked a whopping $440 price tag on the stock before it saw the market. However, that price is already outdated. This morning, research outfit MoffettNathanson indicated a new price target. Its analysts have given COIN a $600 price target ahead of the Coinbase IPO.

How Does COIN Earn a $600 Price Before the Coinbase IPO?

Why has the stock been given such a massive price target before it even hits the market? Well, the whole crypto industry is a burgeoning market, and Coinbase is the largest crypto exchange in the United States, as evidenced by its soaring revenue. The exchange offers trading in 25 different tokens, and it continues to stack its offerings with new tokens.

Additionally, investors are excited at the prospect of not just purchasing cryptocurrencies, but owning a piece of the exchange that bolsters the legitimacy of the digital currency. MoffettNathanson calls Coinbase Pro, “a leading technology infrastructure provider for the cryptocurrency ecosystem.” There is an attractive aspect for investors in taking a share of the infrastructure provider rather than the more volatile currencies themselves. That being said, the research firm has still labeled the stock, “not for the faint of heart,” as the nature of the business makes it prone to volatile swings.

The Coinbase IPO tomorrow could ultimately value the company at over $100 billion.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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