On Friday, Keefe, Bruyette & Woods updated its price target for Coinbase (NASDAQ:COIN) Global Inc. (NASDAQ:COIN), lifting it to $240 from the previous $230, while maintaining a Market Perform rating on the stock. This adjustment follows the company's reported earnings, which exceeded expectations.
Coinbase's net revenues reached $1.588 billion, surpassing the firm's estimate of $1.385 billion by approximately 15% and the consensus estimate of $1.364 billion by around 16%. The increase in revenue was attributed mainly to higher transaction revenues. The volumes of transactions were consistent with the firm's predictions, but a larger portion stemmed from retail activities that incur higher fees, coupled with a retail fee rate that exceeded projections.
The company's adjusted EBITDA also exceeded expectations, coming in at $1.014 billion compared to the $744 million anticipated by Keefe, Bruyette & Woods. However, the figures are not directly comparable due to certain restatements made in the quarter.
Coinbase has disclosed that quarter-to-date transaction revenues are tracking in line with estimates. Furthermore, the company provided guidance for the second quarter of 2024 for subscription and services revenue that is slightly above the midpoint of the firm's estimates. Based on these outcomes, the firm has raised its forward estimates for Coinbase, alongside the increased price target.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.