Coinbase (NASDAQ:COIN) was lifted to Overweight from Neutral with a $70 price target by Atlantic Equities on Tuesday.
Analysts told investors in a note that the cryptocurrency exchange's results "confirmed management's focus on returning the business to sustainable profitability."
Coinbase shares have gained around 4% ahead of the open, trading above the $59 mark.
"The company is regaining custody asset share and is also leveraging its trust credentials to exercise pricing power - both important steps towards building resilience in the model," wrote analysts.
They noted that while risks remain in the form of a weak volume backdrop, recession, regulation, and market prices, they believe that Coinbase's recent actions "allow investors to look through towards the longer-term opportunity."
"We are raising our revenue estimates by 8.2% and 7.4% in FY23 and FY24, while our FY25 estimate falls by 3.2%. We are maintaining our target price at $70, and note that every 10% move in crypto market cap influences this value by about 7-8%, making Coinbase the best way to express a view on the crypto market," analysts concluded.