Needham & Company Increases Coinbase Price Target
Equity analysts at Needham & Company raised their price target for Coinbase from $375 to $420 a share, citing robust December volumes and increased altcoin trading.
Key Insights
- The increase is attributed to significant retail activity returning to the crypto market, with December volumes projected to be the highest ever.
- Analysts noted that heightened volatility, especially with Bitcoin nearing $100,000, alongside increased altcoin activity, are driving this volume surge.
Stock Performance
- Coinbase's shares have risen over 80% this year, significantly post Donald Trump's presidential election victory, which pushed bitcoin beyond the $100,000 mark.
- Investment in Coinbase is perceived as an indirect investment in the crypto market.
Future Projections
- The analysts expect strong results for Q4 2024 and for next year:
- Q4 2024: Total volume of $435 billion, revenue of $2.1 billion, EPS of $2.37 per share.
- 2025: Revenue projected at $8.9 billion, with EPS of $9.61 per share.
Coinbase shares were trading at $316.01, down 8% for the day, as reported by Yahoo Finance. Following the presidential election, the company's shares escalated from under $200 to over $300 per share.
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