Raymond James upgrades Coinbase despite long-term concerns

Raymond James analyst Patrick O’Shaughnessy upgraded Coinbase to Market Perform from Underperform without a price target. The firm says that while its long-term bias on Coinbase remains negative, it no longer believes an Underperform is the appropriate near-term investment rating. The longer this crypto rally persists the greater the odds that a competitor attacks Coinbase with a disruptive pricing strategy, the analyst tells investors in a research note. Raymond James also continues to have substantial doubts about Coinbase’s long-term earnings prospects. With that said, the firm admits to underappreciating the impact that exchange-traded product inflows would have on the valuations of cryptocurrency in general and bitcoin in particular. Until the flows taper and/or reverse, Coinbase’s current share momentum may persist, Raymond James says.