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Analysts John Todaro & Daniel Lehmann wrote that this outcome would moderately reduce the regulatory pressure on stock, which has a significant impact on share price.

The broker has maintained its Buy rating for Coinbase shares, and increased its price target from $70 to $120. In premarket trading on Friday, Coinbase shares were down 1% at $105.96. Stock closed 25 percent higher on Thursday after the Ripple Court ruling.

The report stated that the recent bitcoin (BTC), exchange-traded fund (ETF) application by major traditional financial institutions who use Coinbase for different services, “gives us additional comfort regarding the broad support for the ecosystem” and Coinbase.

Needham has modestly increased its second-quarter earnings estimates 2023 for the crypto exchange. However, it warned that further declines in retail trading will result in low volumes for the third quarter.

Needham’s bullish remarks were in stark contrast with those of German investment firm Berenberg. had written Thursday, that the rally of Coinbase shares after news of the Court’s decision is unwarranted.

Read more: XRP ruling a ‘landmark’ judgment, weakens SEC’s stance against crypto: Bernstein