Do Wall Street Analysts Like Coinbase Global Stock?
Valued at a market cap of $79.8 billion, Coinbase Global, Inc. (COIN) is a leading cryptocurrency exchange that operates a comprehensive platform for digital assets. The New York–based company provides consumers with a primary financial account for the crypto economy, offers institutions a brokerage platform with deep liquidity across the crypto marketplace, and delivers a suite of products enabling developers to build on-chain applications.
This cryptocurrency leader has considerably outpaced the broader market over the past 52 weeks. COIN has rallied 61.5% over this time frame, while the broader S&P 500 Index ($SPX) has gained 20.1%. Moreover, on a YTD basis, the stock is up 25.1%, compared to SPX’s 8.6% return.
However, narrowing the focus, COIN has lagged behind the First Trust SkyBridge Crypto Industry and Digital Economy ETF’s (CRPT) 90.9% uptick over the past 52 weeks and 33.5% surge on a YTD basis.
On Jul. 31, Coinbase Global reported weaker-than-expected Q2 results, triggering a 16.7% drop in its share price on the following day. Due to higher subscription and services revenue, the company’s total revenue improved 3.3% year-over-year to $1.5 billion, but missed the consensus estimates. The shortfall can be attributed to a 2.1% decline in its transaction revenues. Moreover, despite the modest top-line rise, its adjusted EBITDA fell 14% from the year-ago quarter to $512.1 million, while its adjusted EPS of $0.12 decreased by a sharp 89.1%, missing analyst estimates by 89.9%.
For the current fiscal year, ending in December, analysts expect COIN’s EPS to decline 37.5% year over year to $4.75. The company’s earnings surprise history is mixed. It exceeded the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 31 analysts covering the stock, the consensus rating is a "Moderate Buy” which is based on 13 “Strong Buy,” one "Moderate Buy,” 14 “Hold,” and three “Strong Sell” ratings.
This configuration is less bullish than a month ago, with one analyst suggesting a “Strong Sell” rating.
On Aug. 8, Compass Point downgraded COIN to a "Sell" rating and lowered its price target to $248.
The mean price target of $371.33 represents a 19.6% premium from COIN’s current price levels, while the Street-high price target of $510 suggests an ambitious upside potential of 64.2%.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.