SummaryCoinbase has good growth prospects and profitability.The company stands to benefit from the coming crypto bull market.However, competition will intensify, and this will take a toll on profitability.Thesis SummaryCoinbase Global, Inc. (NASDAQ:COIN) has recently rallied strongly, following positive news and a strong Bitcoin (BTC-USD) recovery. Looking at analyst forecasts, it seems clear that Coinbase is undervalued, which is why I expect it to rally strongly, especially as we enter a new crypto bull market. Even with the regulatory uncertainty surrounding crypto, I am bullish on COIN and calculate its fair value of at least $260.Quick OverviewCoinbase is one of the largest exchanges in the world. It was founded in 2012 by Brian Armstrong, and it started trading publicly on the Nasdaq in April 2021. This was at the height of stock market valuations, and Coinbase shares began trading at $250, with a valuation of $86 billion.COIN Price Chart (TradingView)As we can see in the chart above, Coinbase traded as high as $360 in November but has since fallen considerably together with most Nasdaq stocks. At its lowest, COIN was trading at just over $40. However, we have seen a significant rally in the past month, with Coinbase making headlines for good and bad reasons.On the unfortunate news side, Coinbase was accused by the SEC of trading unregistered securities. Of course, this debate spills into that of what cryptocurrency is. ...
