On Monday, H.C. Wainwright adjusted its outlook on Coinbase (NASDAQ:COIN) Global Inc. (NASDAQ:COIN), increasing the price target to $300 from $250, while maintaining a Buy rating on the stock.
The firm's analyst cited the first quarter of 2024 as a particularly strong period for the cryptocurrency industry, which included the successful launch of spot Bitcoin ETFs in the United States on January 11. These ETFs attracted over $12 billion in total net inflows in the first quarter.
The analyst noted that the excitement surrounding Bitcoin's fourth halving event on April 19 contributed to the cryptocurrency reaching new all-time highs. Bitcoin's price surged 69% quarter-over-quarter, exceeding $71,000 at the end of the first quarter and hitting a peak of $73,800 on March 13. Ethereum (ETH) also saw significant growth, with a 60% increase quarter-over-quarter to over $3,600.
Aggregate spot trading volumes across centralized cryptocurrency exchanges witnessed a dramatic 96% increase quarter-over-quarter to $5.75 trillion in the first quarter of 2024. March alone saw $2.94 trillion in total volumes, marking the highest level since May 2021 and representing a 108% increase over the previous month.
The firm expresses confidence in Coinbase's upcoming financial report on May 2, anticipating another revenue beat due to robust market trends, despite the stock's 20% decline over the past month. This decline was attributed in part to a recent court ruling on Coinbase's motion to dismiss an SEC lawsuit.
However, the firm maintains a positive stance on Coinbase, believing it is well-positioned to benefit from the ongoing crypto bull market cycle, which is thought to be in its early stages. The historical pattern of Bitcoin halving events leading to bull rallies in crypto asset prices further supports this belief.
InvestingPro Insights
As Coinbase Global Inc. (NASDAQ:COIN) gears up for its financial report on May 2, real-time data and insights from InvestingPro provide a deeper dive into the company's current market position and performance. With a market capitalization of $58.0 billion and a high Price / Book multiple of 9.23, Coinbase is considered a heavyweight in the crypto exchange industry. The company's revenue for the last twelve months as of Q4 2023 stands at $2.93 billion, despite a slight decline of -7.08%. However, it's notable that the company has experienced a substantial price uptick over the last six months, boasting a 233.88% return.
InvestingPro Tips indicate that analysts are optimistic about Coinbase's prospects, with net income expected to grow this year and four analysts having revised their earnings upwards for the upcoming period. Additionally, while the stock trades at a high earnings multiple with a P/E ratio of 582.39, analysts predict the company will be profitable this year. These metrics, coupled with the company's high return over the last year and a strong return over the last three months (77.93%), paint a picture of a company with significant growth potential in the eyes of investors.
For readers looking to explore further, InvestingPro offers additional insights and tips on Coinbase, which can be accessed at https://www.investing.com/pro/COIN. There are 11 more InvestingPro Tips available for those seeking a comprehensive analysis. To take advantage of these resources, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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