Last week, Citi hiked its price target to $505 from $270. The analyst said Coinbase stands to gain from legislative momentum as well as stronger bitcoin prices and improved custodial fee revenue.
An explosion in demand for crypto beyond bitcoin — particularly coins and companies in the Ethereum universe — are also widely viewed as a boon to Coinbase.
Coinbase reported disappointing second-quarter revenue last week, causing investors to sell their shares despite a stronger start to the third quarter. Coinbase is still up 20% year to date.
—CNBC’s Adrian van Hauwermeiren contributed reporting