- Tiger Securities upgraded Coinbase to Buy from Hold with a $200 price target.
- The firm argues Bitcoin's risk/reward has improved after a sharp correction, signaling the worst of the crypto bear market may be over.
- The next cycle could be driven by recovering liquidity, institutional demand, and stronger risk appetite.
Tiger Securities turned bullish on Coinbase Global Inc. (COIN) on Thursday, upgrading the stock to Buy from Hold and setting a $200 price target. The upgrade reflects a more optimistic near-term stance on the crypto exchange, with the firm citing improved Bitcoin risk/reward following a sharp correction that pushed the digital asset to recent lows.
"We believe the worst of the crypto bear market is likely behind us," the analyst wrote in a note to clients. "Improving liquidity conditions and a pickup in institutional demand could pave the way for a new cycle." The firm also pointed to stronger risk appetite among investors as a potential tailwind.
Coinbase shares have been volatile this year, tracking Bitcoin's price swings and regulatory headlines. The upgrade comes as the exchange faces ongoing regulatory scrutiny, including a pending SEC lawsuit, but Tiger Securities sees the current environment as a buying opportunity.
"The risk/reward for Bitcoin has improved significantly after the selloff, and Coinbase is well-positioned to benefit from a recovery in trading volumes and custody assets," the analyst added. The $200 target implies roughly 30% upside from current levels.
A spokesperson for Coinbase declined to comment on the upgrade. Shares were up about 4% in afternoon trading following the announcement.