KBW Boosts Coinbase Price Target to $130 Amid Revenue Expectations Rise

Keefe, Bruyette & Woods (KBW) has raised its 12-month target price for Coinbase Global (COIN) from $160 to $130 due to higher revenue and adjusted EBITDA estimates. The analysts expect growth in USDC balances and transaction volumes, as well as the recent rise in crypto asset prices, to drive Coinbase's earnings.

KBW Raises Coinbase Price Target to $130 Amid Revenue and Earnings Boost

New York, NY - Keefe, Bruyette & Woods (KBW) has upgraded its 12-month price target for Coinbase Global (NASDAQ: COIN) from $160 to $130, citing a more optimistic outlook for revenue and adjusted EBITDA. The upward revision follows a review of the company's full-quarter volumes and end-of-period USDC balances.

"We are raising our COIN estimates to reflect full quarter volumes and EOP USDC balances," said analysts led by Kyle Voigt. "However, we won't know the split between retail and institutional transaction volumes until COIN's earnings print, and this mix could still drive significant revenue variances vs. our estimate for the quarter."

The investment bank also revised its COIN earnings per share (EPS) forecast for 2024 from $1.84 to $4.15 and for 2025 from $1.20 to $3.33. Additionally, they have introduced an EPS estimate for 2026 at $3.74, marking an 11.7% growth over the 2025 estimate.

The adjustments are primarily driven by the anticipated growth in the company's USDC balances and a more positive outlook on transaction volumes. The recent surge in crypto asset prices in the first quarter also contributed to the upward revision.

"We believe that Coinbase is well-positioned to benefit from the growth of the digital asset market," Voigt said. "The company has a strong track record of innovation and has built a large and loyal customer base. We expect COIN to continue to be a leader in the industry."

The move by KBW follows a recent upgrade by Goldman Sachs, which lifted its price target on Coinbase to $150 from $120. The analysts at Goldman Sachs cited the company's strong revenue growth and its potential to benefit from the adoption of digital assets.

Coinbase has faced headwinds in recent months due to the downturn in the crypto market. However, the company has taken steps to reduce its costs and improve its profitability. The upward revisions from KBW and Goldman Sachs suggest that analysts are becoming more optimistic about the company's long-term prospects.

In a separate note, Needham & Company analyst John Todaro reiterated his "Buy" rating on Coinbase. Todaro believes that the company's recent investments in product development and technology will position it for long-term growth.

"We believe that Coinbase is one of the best positioned companies in the digital asset industry," Todaro said. "The company has a strong management team, a large and loyal customer base, and a strong financial position. We expect COIN to continue to be a leader in the industry."

Overall, the analyst sentiment for Coinbase remains positive. The recent upward revisions from KBW, Goldman Sachs, and Needham & Company suggest that analysts believe the company is well-positioned to benefit from the growth of the digital asset market.