Citi Upgrades Coinbase Shares to Buy from Neutral

Citi, in a research report released on Tuesday, believes that crypto exchange Coinbase could see benefits from a better regulatory climate in the US following the November presidential election and the Supreme Court’s decision to overturn the Chevron precedent.

As a result, the bank has upgraded the rating of Coinbase’s shares from neutral to buy and has increased the price target from $260 to $345. At the time of publication, the shares were trading at around $266 with little change in the premarket.

According to Citi, the stock could respond positively to a more favorable regulatory environment, thanks to the US election and increased confidence in Coinbase’s legal strategy following the overturning of the Chevron Deference Doctrine.

The bank’s analysts, led by Peter Christiansen, stated that while there may be increased turbulence in the upcoming election, they believe the risk/reward balance for Coinbase, particularly in regards to its defense against the Securities and Exchange Commission’s (SEC) lawsuit, has greatly improved in the past few weeks.