Shares of Coinbase Global Inc. (NASDAQ:COIN) were trading higher on Friday after the company reported upbeat third-quarter results a day earlier.
Here are some key analyst takeaways:
- JPMorgan analyst Kenneth Worthington maintained an Overweight rating, while cutting the price target from $404 to $399.
- Rosenblatt Securities analyst Chris Brendler reiterated a Buy rating, while raising the price target from $450 to $470.
- BTIG analyst Andrew Harte reaffirmed a Buy rating, while lifting the price target from $410 to $420.
- HC Wainwright analyst Mike Colonnese maintained a Buy rating and price target of $425.
- Needham analyst John Todaro reiterated a Buy rating and price target of $400.
Check out other analyst stock ratings.
JPMorgan: Despite expectations being high going into the quarter, Coinbase Global delivered a revenue and earnings beat, Worthington said in a note. The company's revenues came in at $1.869 billion, surpassing Street expectations of $1.803 billion, he added.
Coinbase Global reported adjusted EBITDA of $801 million, ahead of the consensus estimate of $708 million, taking its adjusted diluted earnings to $1.44 per share, topping the consensus of $1.21 per share, the analyst stated. The company also reported record-high stablecoin revenues of $355 million, he added.
The company's ecosystem grew via new product launches and M&A (mergers and acquisitions), Worthington added.
Rosenblatt Securities: Coinbase Global delivered a solid beat, driven mainly through transaction revenues, which were boosted by the Deribit acquisition, Brendler said. The acquisition, which closed on Aug. 14, contributed around $52 million in revenue and about $30 million in operating expenses, he added.
Excluding the acquisition, the company's core revenue of $1.85 billion and EBITDA of $750 million still exceeded both top-and bottom-line estimates, "underscoring strong organic execution across trading and subscriptions," the analyst wrote. Coinbase Global's consumer spot volume rose 37% sequentially to $59 billion, "outpacing both global spot and US benchmarks," he further said.
BTIG: Coinbase Global reported solid results, with revenue and adjusted EBITDA significantly beating estimates, Harte said. The results supported the view that the company is "in the early stages of building a virtuous flywheel between its trading business and digital applications," he wrote.
From a crypto trading perspective, Coinbase Global expanded its tradable spot assets to over 40,000, scaled its U.S. perpetual futures offering, and added global options with Deribit, the analyst stated. CEO Brian Armstrong also discussed the company’s plans to build a full-stack payments platform, the analyst added.
HC Wainwright: Coinbase Global's Subscription and Services revenue guidance came in line with consensus forecasts, Colonnese said. He added, however, that the expense guidance was higher than expected due to headcount growth and recent acquisitions.
Coinbase Global continued to make progress on its "Everything Exchange" plans to capture a greater share of wallet from its customers, the analyst stated. The company's key partnerships with JPMorgan Chase & Co (NYSE:JPM), BlackRock Inc (NYSE:BLK) and other leading financial institutions, "an expanded product suite, regulatory tailwinds, and the prospect for rising digital asset prices over the near-term should get investors excited about the name," he further wrote.
Needham: Coinbase Global reported its revenue and adjusted EBITDA results meaningfully higher than expected, Todaro said. The company continued with its "everything exchange" movement, "as the platform broadens out to include assets beyond crypto-specific markets," he wrote.
This makes Coinbase Global a direct competitor of Robinhood Markets Inc (NASDAQ:HOOD) and other peers that are broadening their product suites, the analyst stated. Despite the strong results, retail trading volumes across the industry have become "anemic" over the past few weeks, "as alt-coins fail to gain upward price momentum," he added.
COIN Price Action: Coinbase Global shares were up 9.01% at $358.11 at the time of publication on Friday, according to Benzinga Pro data.
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