Is Wall Street Bullish or Bearish on Coinbase Stock?
Valued at a market cap of $66.8 billion, Coinbase Global, Inc. (COIN) is a leading cryptocurrency exchange platform that allows individuals and institutions to buy, sell, and store digital assets like Bitcoin, Ethereum, and other cryptocurrencies. The New York-based company provides a range of services including retail trading, institutional trading tools, a secure crypto wallet, staking, and developer APIs for blockchain applications.
This financial company has outpaced the broader market over the past 52 weeks. Shares of COIN have rallied 12.1% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11.6%. Moreover, on a YTD basis, the stock is up 7.3%, compared to SPX’s marginal return.
However, narrowing the focus, COIN has underperformed the Fidelity Crypto Industry and Digital Payments ETF’s (FDIG) 17.8% uptick over the past 52 weeks. Nonetheless, it has outperformed the ETF’s 3.8% drop on a YTD basis.
On May 13, shares of COIN soared 24% after it was announced that the company would be added to the S&P 500 Index, replacing Discover Financial Services (DFS). The uptick marked COIN’s largest single-day gain since the day after Donald Trump’s election victory.
On May 8, COIN delivered its Q1 results, and shares of the company plunged 3.5% in the following trading session. Its total revenue of $2 billion improved 24.2% from the year-ago quarter due to higher transaction revenues, and subscription and services revenues, but missed the consensus estimates. On the other hand, its adjusted net income per share declined 23.3% year-over-year to $1.94 but topped the forecasted figure. A 51.5% rise in its operating expenses led to a drop in its bottom line.
For the current fiscal year, ending in December, analysts expect COIN’s EPS to decline 35.3% year over year to $4.92. The company’s earnings surprise history is promising. It exceeded or met the consensus estimates in each of the last four quarters.
Among the 26 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on 10 “Strong Buy,” one “Moderate Buy,” 14 “Hold,” and one “Strong Sell” rating.
This configuration is slightly less bullish than a month ago, with 11 analysts suggesting a “Strong Buy” rating.
On May 27, Jefferies Financial Group Inc. (JEF) maintained a “Hold” rating on COIN and raised its price target to $260.
While COIN trades above its mean price target of $257.08, the Street-high price target of $400 suggests an ambitious upside potential of 50.2%.
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.