Analysts Boost Coinbase Price Target Amid Stellar Q4 Performance
Following a remarkable fourth-quarter earnings report, H.C. Wainwright analysts have elevated their price target for Coinbase to $350.This adjustment underscores the companyS significant market share gains and a bullish outlook from its leadership.
Extraordinary Q4 Revenue and Trading volumes
Coinbase’s Q4 2024 revenue soared to $2.27 billion, representing an 88% increase from the previous quarter and a 138% jump year-over-year.These figures comfortably surpassed Wall Street’s projections of around $1.8 billion,as highlighted in an analyst note shared with crypto.news.
Trading volumes also experienced a ample surge, climbing 132% quarter-over-quarter to $439 billion. Retail trading volume saw an even more dramatic increase, rising 176% to $94 billion, while institutional trading volume grew by 128% to $345 billion.
A Golden Age for Crypto
Coinbase CEO Brian Armstrong characterized the current market environment as “a golden age for crypto,” attributing much of the industry’s growth to enhanced regulatory clarity following the election. This clarity has provided a solid foundation for the crypto sector’s expansion.
Analyst Optimism and Valuation
H.C. Wainwright analyst Mike Colonnese believes Coinbase is well-equipped to capitalize on these favorable trends. Despite a 75% increase in the stock price over the past year, Colonnese maintains that the stock remains undervalued compared to its intrinsic worth.
Colonnese stated, “We continue to see value here and are raising our price target to $350 from $330.” This revised target is based on an EV/revenue multiple of 11.5 times applied to an updated 2025 revenue estimate of $8.4 billion,up from the previous estimate of $7.34 billion.
Customer growth and Subscription Success
The company’s monthly transacting users climbed 24% to 9.7 million, with half of these customers being either new or reactivated after a year of inactivity. Subscription and services revenue also exceeded expectations, reaching $641.1 million, driven by blockchain rewards and a surge in Coinbase One subscriptions.
For the first quarter of 2025, Coinbase anticipates subscription and services revenue to range between $685 million and $765 million, exceeding the consensus estimate of $648 million. The company also forecasts ongoing strength in USDC and increased marketing spending.
Future Projections and Market Position
Analysts predict that Coinbase will continue to benefit from the evolving regulatory landscape and the rising adoption of cryptocurrencies. They project a 28% revenue growth for 2025, reaching $8.4 billion. As of the latest trading session, Coinbase shares were valued at $276.50 on the Nasdaq.
With these positive indicators and expert insights, Coinbase appears poised to maintain its leadership in the crypto market, driving further innovation and growth in the coming years.
