1 Wall Street analyst thinks Coinbase shares will hit $145. Sell?

Over the past few months.Coinbase Global （Nasdaq ResonanceStock Code(COIN)'s stock price is soaring. With more and more investors having easy access to thebitcoin (virtual currency)The cryptocurrency trading platforms are the beneficiaries and the value of this leading cryptocurrency continues to increase.

That led one analyst to sharply raise his target price for Coinbase shares last week. But that doesn't mean that theMizuhoAnalyst Dan Dolev thinks you should buy this stock. Even after raising his company's price target from $84 to $145 per share, the analyst still says you should sell the stock. That's because the new price target is nearly 40% lower than Coinbase's recent share price.

Bitcoin Mania

Dolev's sharp increase in Coinbase's price target comes after the stock surged nearly 90% in the past three months. The U.S. Securities and Exchange Commission (SEC) recently approved a spot Bitcoin exchange-traded fund (ETF). This has sparked more interest in holding cryptocurrencies.

But Dorev believes that this interest has become an unsustainable frenzy. He raised his target price in recognition of the growth in cryptocurrency trading volume, which Coinbase charges a transaction fee for, so the increase in trading volume has boosted its revenue.

However, Dollef noted that while Goon's "near-term picture is favorable, our concerns about the longer-term fundamentals remain." These concerns include competitive pressures that could hurt fee revenues, as well as the "lower quality" of smaller crypto token transactions.

Even Coinbase's Simmons Financial Officer Alesia Haas, in an interview withBarron's.The interview also acknowledged that "where our stock has risen, it has been a reflection of the broader sentiment around the future of cryptocurrencies, rather than a reflection of Coinbase's financial position or our recent financial performance."

This broader sentiment has artificially boosted Coinbase's stock price. In addition, investors who buy Bitcoin ETFs don't need to use Coinbase as an exchange, and Dolev thinks it would be wise for investors to take profits after the recent run-up in Coinbase's share price.

Should you invest $1,000 in Coinbase Global right now?

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Howard Smith does not own any of the stocks mentioned above.The Motley Fool holds recommended Bitcoin and Coinbase Global.The Motley Fool has a disclosure policy.

1 Wall Street Analyst Thinks Coinbase Shares Will Rise to $145. Sell? Originally Posted by The Motley Fool