JPMorgan initiates coverage of Coinbase at overweight, says stock can rebound more than 60%

Monitors display Coinbase signage during the company's initial public offering (IPO) at the Nasdaq MarketSite in New York, U.S., on Wednesday, April 14, 2021.
Michael Nagle | Bloomberg | Getty Images

Coinbase's stock should be able to claw back its losses as the company benefits from continued growth of the cryptocurrency market, according to JPMorgan.

Shares of the cryptocurrency exchange have struggled in recent days as bitcoin and other digital currencies have traded volatilely. The stock has fallen in seven of the past nine trading sessions, with each decline greater than 2.5%.

JPMorgan analyst Kenneth Worthington initiated coverage of the stock on Tuesday with an overweight rating, saying that the outlook for Coinbase and the crypto space was still bright despite the recent swings.

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