Reported by virtual currency exchange Coinbase (COIN) 4th quarter earnings After the market closed yesterday, Exceed consensus expectations. The stock rose 15% in premarket trading on Friday as some Wall Street analysts upgraded the stock and raised their price targets.
KBW upgraded Coinbase from Underperform to Market Perform and raised its price target from $93 to $160.
The bank said it was “skeptical that current levels of retail enthusiasm and speculative activity will persist over the long term.” Still, the company raised its stock price to reflect the rise in cryptocurrency prices since the beginning of the year and the positive spillover effect on earnings. He also cited tailwinds from “significant changes” in USD Coin (USDC) balance growth, which has increased by 15% this year.
Wedbush reiterated its Outperform rating and raised its price target to $200 from $180.
The investment firm said the results “appropriately address the bearish thesis regarding COIN.” There is no obvious fee compression or cannibalization with exchange-traded funds (ETFs), and the exchange continues to reduce its retail and trading fee exposure while increasing its institutional exposure.
Canaccord Genuity maintained a buy rating on the stock and raised its price target from $140 to $240. The company said there are positive tailwinds for its business and the industry as a whole.
JMP Securities maintained its Outperform rating and raised its price target from $200 to $220. He said he was satisfied with the exchange's fourth-quarter results and was further encouraged by its outlook.
Mizuho Securities was not so bullish. The company said it remains cautious about Coinbase stock following the earnings report, adding that while the company reported better-than-expected revenue and EBITDA, “consensus was off.” The main disappointment was that retail interest rates fell 80 basis points sequentially.
