Oppenheimer has named cryptocurrency exchange Coinbase (COIN) , financial-exchange titan Nasdaq (NDAQ) – Get Nasdaq, Inc. Report and research firm S&P Global (SPGI) – Get S&P Global, Inc. Report as its top stock picks for 2022.
The picks are based on four catalysts:
■ “Catalyst No. 1: Mainstreaming of digital assets/blockchain. We believe the adoption of digital assets in both institutions and retailers will continue.
■ “Catalyst No. 2: Web3, which is largely built on blockchain and focused on decentralization.
■ “Catalyst No. 3: ESG [environment, social, governance]. The Glasgow Climate Pact will likely accelerate some key actions to protect the climate.” That’s especially good for S&P Global, Oppenheimer said
■ “Catalyst No. 4: Mergers and Acquisitions. In 2021, we saw a number of small and medium-sized deals…. The expectation is for [that to continue].” And Coinbase may be a buyer, Oppenheimer said.
Morningstar analyst Michael Miller has a mixed take on Coinbase.
“Due to its breadth of its service offerings and the connection between cryptocurrency prices and trading revenue, Coinbase’s short- and long-term results are deeply tied to the health and growth of cryptocurrencies as an asset class,” he wrote in a commentary last month.
“Cryptocurrency adoption continues to rise but questions regarding the long-term viability of cryptocurrency, the role of speculation in current market prices, and the potential for a more hostile regulatory environment remain unanswered.
“Ultimately, Coinbase has created a strong position for itself in the cryptocurrency space, but the value of that position will be reliant on the long-term success or failure of cryptocurrencies.”
Miller puts fair value for the stock at $225, down from its recent quote of $253.69.