The largest Wall Street banks, including Goldman Sachs and Canaccord Genuity, have once again turned their attention to the crypto industry, raising price targets for shares of key players — Coinbase (COIN) and Strategy (MSTR, formerly MicroStrategy). Both financial giants maintained a "buy" recommendation, signaling a shift in market sentiment after a period of caution.
This decision was a logical response to the rapid rally in digital assets observed last week. The market has clearly perked up, and institutional investors are beginning to incorporate more optimistic scenarios into their models.
Goldman Sachs: Betting on Coinbase's Diversification
Goldman Sachs analysts raised their price target for Coinbase shares from $173 to $196, approximately 13% above the previous forecast. They see key growth drivers not only in the overall improvement of the crypto market environment but also in the sustainable development of the exchange's new business lines.
"COIN, rated 'buy,' has additional upside potential if the crypto market situation improves further, and it also demonstrates solid organic growth in new segments, including derivatives and prediction markets," the experts note.
At the close of trading, COIN shares stood at $187.16, gaining 4.28% on the day. The bank's new target implies upside potential of about 5% from current levels. Notably, back in March, Goldman set a price target of $235 but later lowered it in response to market turbulence.
Canaccord Genuity: Optimism Regarding Strategy
Canaccord Genuity took an even bolder step, raising its price target for Strategy shares to $175 from the previous $130. This forecast exceeds Tuesday's closing price ($126.83) by approximately 38%, indicating the analysts' high confidence in further growth.
"Over the past couple of weeks, the situation for MSTR has improved markedly — like a breath of fresh air," the bank commented.
Price dynamics confirm the shift in sentiment. Since August 19, MSTR shares have risen by 34.66%, while COIN has gained 27.14% over the same period.
It is worth recalling that market sentiment was diametrically opposite in the summer. As recently as July 31, Wall Street analysts were lowering forecasts for COIN after the company reported weaker-than-expected quarterly results for the third consecutive time.
Both updated estimates imply growth relative to the closing of the last trading session. Whether analysts continue to raise price targets will depend on whether last week's momentum holds into September.
My view: The upward revisions are a clear sign that institutional players are beginning to believe in the sustainability of the current uptrend. However, one should not forget that the crypto stock market is extremely volatile, and such target adjustments could be either the start of a new bull cycle or merely a reaction to a short-term surge. The key indicator will be Bitcoin's ability to hold above psychologically important levels in the coming weeks.