Coinbase Global Inc. continues to be a divisive name on Wall Street. Although a JPMorgan analyst recently expressed bearish sentiments towards Coinbase's stock, an Oppenheimer analyst has taken a bullish stance on the company.

In a note to clients, Oppenheimer's Owen Lau emphasized the strong long-term competitive position of Coinbase. Lau asserted that Coinbase possesses greater strength than most people realize and that its management team is tougher than commonly perceived.

Following this optimistic outlook, Coinbase shares experienced a more than 1% rally after Friday's opening.

Lau also expressed positivity regarding the recent launch of spot bitcoin exchange-traded funds (ETFs), deeming them a "net positive" for Coinbase. He explained that financially, Coinbase would benefit from new investors, increased adoption, higher trading volume, and higher custody fees. Furthermore, he emphasized that Coinbase's non-financial significance extends as critical infrastructre within the ecosystem.

Despite facing regulatory challenges, including a lawsuit filed by the Securities and Exchange Commission in the previous year, Lau remains confident in Coinbase's ability to overcome these hurdles. He even attended the oral arguments for the case and believes that the court may dismiss all or part of the complaint.

Lau sees an opportunity in Coinbase's stock, which had experienced a 35% decline since December 28. He believes that the company's fundamentals are on an upward trajectory, especially as trading volumes for the first quarter of this year appear significantly higher than those of the previous quarter.

Lau predicts that rate cuts, halving events, and increased adoption will contribute to Coinbase's top and bottom lines over the next two years. Therefore, he has set a target price of $160 for the stock, which is 30% above its current levels. This target price is twice as high as JPMorgan analyst Kenneth Worthington's target price, who downgraded Coinbase's stock to "underweight" from "neutral" recently.

Among the 27 analysts tracked by FactSet who cover Coinbase shares, eight have buy-equivalent ratings, eight have neutral ratings, and eleven have sell ratings.

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