The long-term trajectory looks attractive for Coinbase , even as the company grapples with a “crisis of confidence” amid FTX’s implosion, according to Oppenheimer. “While painful near term, Coinbase can be one of the few long-term survivors in this space, which we think makes it attractive,” wrote analyst Owen Lau in a note to clients Monday. While Coinbase shares plummeted 86% in 2022 as crypto assets took a hit, Wall Street is underestimating the company’s strong balance sheet, market share gains and its subscription and services revenue which could reach as much as 50% of total revenues, according to Lau, who maintained his outperform rating. “We view COIN as an enabler of crypto innovation, which solves some pain points in the existing financial system, and leverages its trading arm to monetize the success,” he wrote. Coinbase shares seesawed before the bell, attempting to build on a 15% jump Monday. The company also announced plans Tuesday to cut 20% of its workforce in its second major round of layoffs as it attempts to trim costs. The firm’s $72 price target implies 88% upside from Monday’s close. The stock’s already up more than 8% since the start of 2023. Lau also views the stocks as one with short squeeze potential, provoked by a shift in Fed policy, a quicker-than-expected decline in inflation, or risk-on market sentiment. “With COIN trading at only 2.3x 2023E revenue versus 8.0x for comparable high-growth fintech stocks, we believe the stock is trading at a depressed multiple,” Lau wrote. “COIN’s near-term trading outlook is challenging, but interest income, consolidation, diversification, staking and crypto adoption continue to provide tailwinds longer-term.” — CNBC’s Michael Bloom contributed reporting