Analyst Gives Coinbase Stock ‘Buy’ Rating with $252 Price Target
Benchmark analyst Mark Palmer has initiated coverage of Coinbase (COIN), giving it a buy rating and a price target of $252. This follows Cantor Fitzgerald's earlier coverage with a target of $245.
Key points include:
- As of now, COIN shares are trading around $197, down from approximately $165 two weeks ago.
- The partnership with Circle allows Coinbase to earn interest income from USDC reserves, positioning it well for stablecoin adoption and legislation.
- Standard Chartered estimates the stablecoin market cap could reach $2 trillion by 2028, up from $230 billion currently.
- Coinbase’s subscription and services revenue rose to $641 million in Q4 2024, marking a 15% increase from the previous quarter and representing 29% of total revenue.
- Palmer forecasts a compound annual growth rate (CAGR) of ~21% for overall revenues and ~36% for non-trading offerings through 2026.
- Coinbase is scheduled to report Q1 results on May 8.