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Coinbase started with buy rating at Rosenblatt, despite downside risk from a bitcoin pullback

The logo for Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron and others at Times Square in New York, U.S., April 14, 2021.
Shannon Stapleton | Reuters

Coinbase is a long-term buying opportunity despite near-term volatility in the price of cryptocurrency as a growing number of institutions like PayPal adopt new digital coins, Rosenblatt Securities told clients.

"Crypto has reached an inflection point on its road to legitimacy, and we see this as a long-term disruptive trend that is only in its early innings," analyst Sean Horgan wrote in a note published Tuesday.

"We are bullish on the long-term upside of COIN as it benefits from the growing adoption and acceptance of cryptocurrency, while our short-term view is more cautious as the stock faces downside risk from a drawdown in the price of crypto," he added. "Net/net, we are buyers of COIN as a long-term category leader and pureplay cryptocurrency stock."

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