Argus gives Coinbase a buy rating: R&D and M&A policies drive valuations beyond traditional exchanges

PANews reported on July 15th that according to Zhitong Finance, Argus recently gave Coinbase Global a "buy" rating, believing that this cryptocurrency trading platform has maintained strong growth momentum, and the recently passed "Cryptocurrency Innovation and Regulation Act" is expected to become a new engine for its business expansion. Argus analysts Kevin Heal and Masako Inagaki noted in their research report that Coinbase's continuous investment in R&D and strategic acquisitions is expected to effectively increase the platform's daily active user scale. However, they also warned that the current stock price valuation has exceeded its fundamental performance. Specifically, Coinbase's price-to-earnings ratio is higher than traditional exchanges such as ICE, NDAQ, CME, and CBOE, but analysts believe that its leading profit margin performance and growth potential during bull market cycles are sufficient to support the short-term premium rationality. As the US "Crypto Week" advances three key legislative initiatives and traditional financial institutions accelerate their layout in the crypto field, Coinbase, as a compliance leader, is expected to continue benefiting from market expansion. Analysts believe that under a clear regulatory framework, the phenomenon of "bad money driving out good money" in the cryptocurrency industry will be curbed, and platforms with technological advantages and compliance qualifications will dominate the next stage of competition.