Shares of Coinbase Global Inc (NASDAQ:COIN) sunk deep into the red on Thursday following poor third-quarter results. The cryptocurrency exchange company remains polarizing among analysts.
The Coinbase Analysts: The following analysts published notes following Coinbase's revenue miss.
- Goldman Sachs analyst Will Nance reiterated a Neutral rating, maintaining a $183 price target.
- Needman analyst John Todaro reiterated a Buy rating, raising its price target from $260 to $290.
- H.C. Wainwright analyst Mike Colonnese reiterated a Buy rating, lowering its price target from $295 to $255.
Goldman Sachs Takeaways: Nance believes that Coinbase's downward price action was cushioned by normalized expectations of revenue swings. The analyst noted his takeaways of management commentary.
"On the strategic front, we thought the company sounded more upbeat about the regulatory environment and notably stated they feel that the crypto ecosystem is well positioned for a more constructive regulatory environment
regardless of the outcome of the U.S. election," Nance said.
The analyst conceded, while in his opinion, Coinbase remains the best way to invest in the crypto ecosystem, it is best to stay on the sidelines due to lack of mass market adoption.
Needham Takeaways: Needham's third-quarter estimates were lower than consensus. Thus, Coinbase beat the blockchain desk's projections. Todaro remains optimistic for the future.
"We believe muted activity can be turned around in the event of a [Donald] Trump win–which would increase crypto product offerings at COIN, and spur increased trading activity in the space," the analyst said.
While Todaro lowered revenue estimates in 2024's fourth quarter and 2025, he raised Coinbase's EV/Sales multiple to reflect a favorable future regulatory outlook. Thus, Needham's price target increased by $30 following earnings.
H.C. Wainwright Takeaways: Colonnese told investors to not "lose sight of the forest through the trees."
"...we remain bullish on shares over the next 12 months given our constructive outlook for crypto asset
prices and an improved regulatory environment for crypto in the US," Colonnese said. "We were encouraged to hear management's positive views on the upcoming election and the implications for the crypto sector."
H.C. Wainwright lowered Coinbase's future revenue, EBITDA, and earnings-per-share estimates, reflected by its price target reduction.
Price Action: Coinbase traded at $190.50, down 10.03% on the day at the time of writing.
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