Coinbase jumps after JPMorgan and Goldman Sachs tag the crypto exchange with 'buy' ratings
- Coinbase stock traded up as much as 8.14% on Tuesday.
- The jump came after analysts from JP Morgan and Goldman Sachs tagged the firm with "buy" ratings.
- JP Morgan holds a $371 price target on Coinbase while Goldman Sachs has a $306 target.
Coinbase stock jumped as much as 8.14% on Tuesday after the crypto exchange landed some analyst support from JP Morgan and Goldman Sachs.
Analysts at both banks tagged Coinbase with a "buy" rating and included price targets well above current share prices this week.
Goldman Sachs holds a $306 price target on Coinbase stock while JP Morgan sees the firm hitting $371 a share.
Goldman analysts called Coinbase "a blue-chip way through which to invest in the development of the (crypto) ecosystem" in their note to clients.
JPMorgan analysts said they believe crypto markets are "durable and growing" and "expect Coinbase has the opportunity to influence and benefit from this market growth as it innovates."
Despite Tuesday's rising share price, Coinbase stock is still down roughly 44% from its record high of $429.54, which was reached after its direct listing in mid-April.
Not all analysts are as bullish on shares of Coinbase as JP Morgan and Goldman Sachs.
Mizuho recently lowered its price target on Coinbase stock to just $225 from $315, citing a "crypto winter" which could result in a reduction of trading volumes for Coinbase and hurt valuations in the crypto sector.
Last week, Coinbase also surprised investors by announcing a $1.25 billion capital raise through a convertible debt offering. The convertible senior notes are due in 2026 and were announced just a day before Coinbase's stock fell below its $250 reference price.
Even with the debt raise and falling share prices, Cathie Wood of Ark Invest continues to load up on shares.
On Friday, two of Wood's ETF picked up a combined 223,181 shares of the crypto exchange worth more than $50 million.
Coinbase now represents the 11th largest holding of Wood's flagship fund, the ARK Innovation ETF, and the 10th largest holding of the ARK Next Generation Internet ETF.
Coinbase stock traded up 7.96% as of 3:29 p.m. ET on Tuesday.
