Argus gives Coinbase a buy rating: driven by R&D and M&A policies, valuation surpasses traditional exchanges

According to a report by Zhitong Finance, Argus recently gave Coinbase Global a "buy" rating, believing that the cryptocurrency trading platform continues its strong growth trend, and the recently passed "Cryptocurrency Innovation and Regulation Act" is more likely to become a new engine for its business expansion. Argus analysts Kevin Heal and Masako Inagaki pointed out in their research report that Coinbase's continued investment in research and strategic acquisitions is expected to effectively increase the platform's daily active user base. However, they also remind that the current stock price valuation has exceeded the fundamental performance. Specifically, Coinbase's price to earnings ratio has surpassed traditional exchange peers such as ICE (ICE. US), NDAQ (NDAQ. US), CME (CME. US), and CBOE (CBOE. US). However, analysts believe that its leading profit margin performance and growth potential during bull market cycles are sufficient to support the rationality of short-term premiums. With the United States&34; Encryption Week&34; Advancing three key pieces of legislation, traditional financial institutions are accelerating their layout in the cryptocurrency field, and Coinbase, as a compliance leader, is expected to continue benefiting from market expansion. Analysis suggests that under a clear regulatory framework, the cryptocurrency industry is facing challenges; Poor money drives out good money&34; The phenomenon will be curbed, and platforms with technological advantages and compliance qualifications will dominate the next stage of competition.