Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Bottoming Out or Bouncing Back? Analyst Revises Coinbase Estimates Amid USDC Woes

Published 01/05/2023, 19:53
Updated 01/05/2023, 21:11
© Reuters.  Bottoming Out or Bouncing Back? Analyst Revises Coinbase Estimates Amid USDC Woes
USDC
-

Benzinga -

  • Needham analyst John Todaro maintains Coinbase Global Inc (NASDAQ: COIN) with a Buy and lowers the price target from $73 to $70.
  • Todaro lowered his Q1 FY23 volume estimate from $151 billion to $147 billion in a Monday note titled "COIN Q1 '23 Preview: Modestly Lowering Volume & Q2 Interest Income from USDC."
  • The analyst modestly raised his Q1 FY23 interest income estimate but lowered his interest income estimate for Q2 FY23 to reflect a 23% lower USD Coin Price (USDC) market cap.
  • Due to Silicon Valley Bank's failure in late March, USDC's market cap declined 23% and is yet to recover.
  • The analyst lowered his price target to reflect lower volume and interest income estimates for FY23.
  • He estimates Q1 FY23 volume to remain nearly flat Q/Q. The analyst foresees Q1 to mark the first quarter since the crypto boom unwound that Coinbase's quarterly volume did not decline, offering optimism that retail volume could have bottomed.
  • Additionally, alt-coin trading as a percent of total trading volume on Coinbase has increased, indicating increased retail risk-taking in crypto.
  • Price Action: COIN shares traded lower by 6.99% at $50.03 on the last check Monday.
Latest Ratings for COIN DateFirmActionFromTo
Mar 2022Goldman SachsMaintainsBuy
Feb 2022Compass PointMaintainsNeutral
Feb 2022Canaccord GenuityMaintainsBuy
View More Analyst Ratings for COIN

View the Latest Analyst Ratings

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.