KeyBanc Capital Markets analyst Alex Markgraff initiated coverage of Coinbase Global Inc. shares with a sector-weight rating Sunday, writing that the company “stands apart for scale, compliance, and trust” in the cryptocurrency ecosystem, though various industrywide pressures keep him from recommending the stock. “Coinbase offers pure-play exposure to the digital-asset ecosystem as an innovative and trusted service provider with a healthy capital position, forward- thinking management team, and an ongoing commitment to user safety,” Markgraff wrote. At the same time, he’s cautious on “visibility into historically highly variable revenue sources subject to crypto trading volumes, crypto asset prices, and other crypto- related activity (e.g., staking, etc.) amid a ‘crypto winter.'” Shares of Coinbase were off 1.2% in premarket trading Monday. The stock has tumbled 84% over the past 12 months as the S&P 500 has lost about 17% over that span.
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