Benchmark has initiated its coverage of Coinbase (COIN, Financial) with a Buy rating and set a price target at $252. As the leading cryptocurrency exchange in the United States, Coinbase holds a significant market share of approximately 66% in the domestic market. Despite this dominant position, Coinbase's stock has experienced a sharp decline, dropping nearly 50% since early December. This is in contrast to a 41% drop in the Global 10 Crypto Index during the same period.
The analyst attributes this decline largely to the volatility in cryptocurrency prices, which have a strong correlation with the movements of Coinbase's stock. However, there is optimism on the horizon, as the cryptocurrency industry moves towards gaining regulatory clarity, which could signify the end of the current market uncertainty.
This potential shift is expected to pave the way for substantial institutional adoption of cryptocurrencies, a development from which Coinbase could significantly benefit. As the regulatory environment becomes clearer, Coinbase's strong market position could allow it to capitalize on these changes, providing an opportunity for growth and recovery in its stock price.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 26 analysts, the average target price for Coinbase Global Inc (COIN, Financial) is $284.50 with a high estimate of $400.00 and a low estimate of $169.00. The average target implies an upside of 49.74% from the current price of $190.00. More detailed estimate data can be found on the Coinbase Global Inc (COIN) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, Coinbase Global Inc's (COIN, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Coinbase Global Inc (COIN, Financial) in one year is $184.72, suggesting a downside of 2.78% from the current price of $190. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Coinbase Global Inc (COIN) Summary page.
