Atlantic Equities upgrades Coinbase on sustainable profitability focus, stock rises 4%

Atlantic Equities on Tuesday upgraded Coinbase Global ( NASDAQ: COIN ) to Overweight from Neutral as the exchange focuses on sustainable profitability and has returned to market share gains for its assets under custody. Shares of Coinbase ( COIN ) rose 4.2% before the bell. "COIN's Q1 results confirmed management's focus on returning the business to sustainable profitability," said analyst Simon Clinch. "While risks remain in the form of a weak volume backdrop, recession, regulation, and market prices, we believe COIN's recent actions allow investors to look through towards the longer-term opportunity." Clinch said Coinbase ( COIN ) is regaining custody asset share and is leveraging its trust credentials to exert pricing power, which should build resilience in its model. Price target was maintained at $70, implying 23% potential upside to its last close. Clinch noted that every 10% move in cryptocurrency market cap impacts the PT by ~7%-8%, making Coinbase ( COIN ) the best way to express a view on crypto prices. Atlantic's stance contrasts Hold ratings from SA Quant Ratings as well as Wall Street analysts . More on Coinbase Coinbase drives higher after Q1 earnings beat on cost controls Coinbase: Well Positioned For The Next Bull Market Coinbase: Crypto Q2 Not Looking Good Coinbase: Q2 Is Going To Be Rough