cryptocurrency platform Coinbase Global Inc COIN second quarter financial results reported after the market close on Tuesday. Here’s what analysts are saying about the company, the crypto bear market, and the future.
The Coinbase Analysts: Bank of America analyst Jason Kupferberg had a buy rating and a price target of $92.
JMP Securities analyst Devin Ryan had a Market Outperform rating and lowered the price target to $195 from $205.
Mizuho Securities analyst Dan Dolev had a Neutral rating and a price target of $42.
Needham analyst John Todaro had a buy rating and a price target of $89.
Related Link: Coinbase Q2 Earnings Highlights: Missing Revenue and EPS, Company Remains Upbeat
The Analyst Takeaways: Bank of America’s Kupferberg called Coinbase’s earnings report a “mixed bag.” The company reported earnings that came in below analysts’ estimates but expressed optimism for the remainder of the year.
The analyst stressed the company’s focus on costs as well as its risk management, commenting that it has no exposure to Celsius, Three Arrows Capital or Luna issues.
“COIN has also historically had no credit losses from funding activities, holds customer assets 1:1, and any lending of customer crypto is at the discretion of the customer,” Kupferberg said. “We believe these rigorous risk management practices will be a positive long-term differentiator for COIN.”
JMP Securities’ Ryan lowered the price target but still had one of the highest targets for the cryptocurrency platform. The analyst said the long-term thesis on Coinbase remains intact.
“We are characterizing Q2 22 as an incredibly tough quarter, but one that we were generally braced for given the challenging macro dynamics,” said Ryan.
The analyst also highlighted that monthly active users are down just 2% qoq despite the macro issues.
“We remain convinced that Coinbase remains incredibly well positioned to benefit if the pendulum swings back to center, which we believe will inevitably be.”
Mizuho Securities’ Dolev pointed to weak second-quarter volumes and overhanging issues that remained for Coinbase.
“Slumps in user and ARPU guidelines should also weigh on sentiment,” Dolev said.
Needham’s Todaro highlighted the optimism in the subscription and services businesses surrounding the ether ETH/USD come together.
“We see Coinbase as an attractive way to tap into the growing crypto-asset universe, which includes intersections in the high-growth areas of stablecoins, decentralized finance, non-fungible tokens, borrowing/lending applications, and yield farming,” Todaro said.
The analyst said the company could increase its trading revenue and its “crypto ecosystem.” Todaro highlights the ease of use of the company’s platform and its growing momentum with institutions.
COIN Price Promotion: Coinbase shares are up 5.01% at $92.03 on Wednesday at publication.
Photo: Nadezda Murmakova via Shutterstock
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