Bitcoin saw a wild ride in 2024 with the asset class outperforming the major equity and commodity indexes by far. The rise of Bitcoin ETFs also greatly expanded the public’s ability and desire to get in on the game. And some Wall Street analysts are following crypto trends with big forecasts ahead.
Mizuho analyst Dan Dolev has issued a very positive call on the world’s top Bitcoin buyer and has upgraded a price target on the top crypto-brokerage firm as well. One of the reports fits right in with tactical investors looking for additional upside from an already-popular asset class!
MicroStrategy Incorporated (NASDAQ: MSTR) was started with an Outperform rating and was assigned a $515 price target in the Mizuho call. After multiple issuances of stock and convertible debt to buy Bitcoin, Doley expects that the largest corporate holder of Bitcoin will continue buying Bitcoin with an anticipation of further price gains on top of what has already been seen. Regarding MicroStrategy’s 75% premium to its assets held, several issues may further warrant upside:
rising global adoption,
slowing rate of bitcoin supply growth,
and a favorable political environment.
MicroStrategy shares closed at $335.93 ahead of the call, and its 52-week range is $46.75 to $543.00.
Coinbase Global, Inc. (NASDAQ: COIN) was upgraded to Neutral from Underperform and Mizuho’s price target was raised up to $290 from $250. Doley’s analysis of bitcoin adoption growth is pointing toward further Bitcoin upside over the medium-term horizon. The report shows that the price of Bitcoin and Coinbase’s shares are highly correlated. An additional boost is also coming from stablecoins as a disruptive force in payments and U.S. dollars with stablecoins representing about 20% of its revenue mix. Doley also noted that Coinbase’s fourth-quarter and January volume trends look to be ahead of expectations. Some caveats here as to why it was not raised to Outperform:
Coinbase shares have higher valuations and are more expensive than Robinhood Markets, Inc. (NASDAQ: HOOD);
President Trump is signaling a more friendly regulatory environment than under Biden that allows more competition;
and a continued rise in Bitcoin ETFs and crypto ETFs may also increase competition for Coinbase.
Coinbase shares closed at $281.82 ahead of Wednesday’s upgrade and the 52-week range is $114.51 to $349.75.
Tactical Bulls always reminds investors and its readers that no single analyst report should ever be the sole basis to buy or sell a stock. That decision to buy or sell, or hold or short sell, is up to each investor and the decision should be made with a financial advisor. Tactical Bulls does not maintain ant in-house price targets nor any formal ratings of its own in the companies mentioned in this report.
Categories: Investing