H.C. Wainwright started coverage of Coinbase Global ( NASDAQ: COIN ) with a Buy rating on Wednesday on expectations that the "dominant" U.S.-based cryptocurrency exchange will benefit from the growing industry and thus gain more market share this year. COIN jumped 6.7% in premarket trading as bitcoin ( BTC-USD ) erased losses over the past five days, surging 9.1% to $29.9K, as solid Big Tech first-quarter earnings sparked a rally across the stock market. The company "is uniquely positioned to benefit from the large and rapidly growing global crypto economy given its trusted brand, easy to use products, and focus on compliance and regulation, and we expect the company to gain market share in 2023," analyst Mike Colonnese wrote in a note. Calling Coinbase ( COIN ) a "scarce asset," Colonnese pointed out that it's the only publicly-listed crypto-focused firm in the U.S. with a market cap exceeding $10B, meaning "competition for investor capital is extremely limited." And with the stock trading at a 35% discount to historical levels (3.6 times 2023 estimated revenue), the note said, "we believe current price levels offer an attractive entry point for investors." As such, he reckons the Wells notice-inspired pullback is overdone despite potential near-term risks associated with regulatory headwinds. Earlier this week, the firm sued the Securities and Exchange Commission to compel the regulator to respond with a "yes" or "no" to its July 2022 petition asking it to use its formal rulemaking process to provide guidance for the crypto industry. More on Coinbase Global Coinbase secures crypto exchange license in Bermuda Coinbase Stock Is Up 80% This Year: Why It's Time To Be Cautious Coinbase: Invest If You Believe In Crypto
