Benzinga - Needham sees Coinbase Global Inc (NASDAQ: COIN) well positioned for growth with expanding revenues driven by broader market sentiments and gave the stock a Buy rating and raised the price target from $160 to $180.
What Happened: Needham analyst John Todaro highlighted Coinbase as the top pick for 2024 by adding it to the Conviction List, citing the company’s product growth including the derivatives launch, international expansion and the Base chain launch.
Base is an Ethereum Layer 2 chain built on OP Stack in collaboration with Optimism. It was incubated within Coinbase to drive the user base on-chain.
A spot Bitcoin ETF approval, halving event and likely interest rate cuts were positives for Needham, as well as the importance of Coinbase amid the changes with myriad crypto exchanges, such as the FTX collapse, Bittrex ending its operation and Binance pulling back.
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Why It Matters: Easy-to-use retail application, listing new assets quickly, OTC execution business and liquidity depth are other factors highlighted by Needham for Coinbase.
Retail trading is still lower than 2021 levels but could see a boost in activity as Bitcoin surges to all-time high levels.
Recently, Coinbase announced it planned to acquire a company with a license to offer crypto-linked derivatives in the European Union (EU). CNBC reported that it is an unnamed holding company that owns a MiFID II license.
Post-deal completion, it would be the first launch of derivatives trading by the company in the EU. Derivatives accounted for 75% of overall crypto trading volumes. Currently, the Coinbase exchange reports $3.5 billion in spot trading volume in the past 24 hours trade.
In its latest earnings, Coinbase revenue and net loss came ahead of analyst expectations. Third-quarter adjusted loss of $0.01 per share vs. FactSet estimates for a loss of $0.55 per share while revenue of $674.1 million beat analyst estimates of $650.9 million.
COIN Price Action: In the past six months of trading, Coinbase reported a 95.8% surge. The stock at market close Monday was up 3.53% at $159.42.
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Latest Ratings for COIN
| Mar 2022 | Goldman Sachs | Maintains | Buy | |
| Feb 2022 | Compass Point | Maintains | Neutral | |
| Feb 2022 | Canaccord Genuity | Maintains | Buy |
View the Latest Analyst Ratings
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