• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

Citi upgrades Coinbase stock to Buy with $345 target: Is a 30% gain within reach?

by July 23, 2024
written by July 23, 2024

Coinbase Global Inc. (NASDAQ: COIN) received an upgrade today from Citi analyst Peter Christiansen, who shifted the stock from a Neutral/High-Risk rating to a Buy/High-Risk rating.

Along with this upgrade, he increased his price target on the stock to $345 from $260, indicating a potential 30% rise from its current price.

Analyst ratings and market sentiment

Coinbase’s journey is being closely monitored by various analysts. Notably, analysts at Raymond James recently highlighted a sequential decrease in cryptocurrency trading volumes, projecting the company to report softer Q2 results compared to Q1.

Despite this, year-over-year comparisons remain favorable due to higher trading volumes compared to the same period last year.

The consensus among Wall Street analysts is for the company to report Q2 GAAP EPS of  $0.88, significantly lower than Q1’s EPS but an improvement over the previous year’s Q2 loss of $0.42.

In contrast, on May 17th, Bank of America Securities upgraded Coinbase to Neutral from Underperform, citing the company’s cost-cutting measures and diversified revenue streams as stabilizing factors against the inherent volatility of cryptocurrency transactions.

This diversified approach seems to be mitigating some of the earnings fluctuations tied closely to transaction volumes.

Looking at the recent earnings, Coinbase’s Q1 performance was robust, with a GAAP EPS of $4.40, vastly outperforming expectations.

The company reported a revenue surge to $1.64 billion, up 112.3% year-over-year, driven by a significant increase in both subscription and services revenue and trading volumes.

Strategic partnerships and business diversification

Coinbase has not only been active in managing its financial health but also in expanding its strategic partnerships.

It recently announced a collaboration with payment platform Stripe which aims to integrate a fiat-to-crypto onramp into the Coinbase Wallet, enhancing user experience and accessibility.

This partnership is expected to fortify Coinbase’s position in facilitating seamless transitions from fiat to digital currencies, highlighting its strategic initiatives beyond mere cryptocurrency trading.

Coibase valuation appears stretched

From a fundamental perspective, Coinbase’s valuation appears stretched by traditional metrics.

With a forward P/E ratio OF 38.33, which is significantly above the sector median, the stock’s current price embeds high growth expectations which may or may not align with future market conditions.

Moreover, the company’s reliance on transaction fees, which are highly sensitive to crypto market volatility, poses risks to its revenue stability.

However, some analysts point out that the company’s strategic ventures, like the recent enhancement of its Ethereum scaling blockchain ‘Base’, demonstrate its commitment to leveraging technology to maintain a competitive edge.

The success of ‘Base’ is critical as it not only boosts transaction volumes but also enhances user engagement and network reliability.

Regulatory and market challenges

Coinbase’s growth trajectory is not without challenges. The ongoing SEC lawsuit and other regulatory scrutiny remain significant hurdles. Moreover, the broader market’s reception to cryptocurrencies and related products, like Bitcoin ETFs, will play a crucial role in determining Coinbase’s performance.

Seasonal trends and the macroeconomic environment, including interest rates and investment flows, will also influence investor sentiment and stock performance.

As we pivot from these fundamental insights to the technical aspects of Coinbase’s stock, it’s crucial to consider how these elements interplay with market trends and investor behaviors.

With the backdrop of a potential 30% gain as posited by Citi, and contrasting viewpoints from other analysts, the question remains: what do the charts indicate about the future trajectory of COIN? Let’s delve into the technical analysis to uncover potential trends and price movements.

Coinbase’s stock can remain rangebound

Although Coinbase’s stock has appreciated significantly since its December 2022 lows near $33, it remains 30% lower than its post-IPO high above $400.

The stock is currently facing stiff resistance above $280, losing upward momentum whenever it tries to cross above it. Since February, it has been trading in a $192-$280 trading range.

COIN chart by TradingView

Hence, the most prudent strategy for short-term traders would be to buy the stock above $192 and short it near $280 while booking profit at the opposite ends of that trading range.

Investors who are bullish on the stock must wait for upward momentum to resume and the stock to give a decisive closing above $280.

Unless it does that, one can expect it to be rangebound in the medium term.  

The post Citi upgrades Coinbase stock to Buy with $345 target: Is a 30% gain within reach? appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Fed rate cuts in September could boost General Motors’ profitability, CFO predicts
next post
BofA double upgrades CH Robinson Worldwide to Buy: Should you invest?

related articles

Asian markets close: Nikkei, Kospi down; Sensex closes...

May 19, 2025

Qualcomm unveils AI chips for data centres with...

May 19, 2025

Best crypto to buy now: Bitcoin Pepe leads...

May 19, 2025

JPMorgan cuts Netflix rating, citing balanced risk-reward post-rally;...

May 19, 2025

Bitcoin ETF open interest dips 5% to $29.47B...

May 19, 2025

US stocks slip in the red on Monday:...

May 19, 2025

Should Klarna IPO remain on watch list after...

May 19, 2025

Why this brokerage downgraded UnitedHealth’s rating to ‘hold’

May 19, 2025

Nvidia opens NVLink Fusion ecosystem, expands Taiwan footprint...

May 19, 2025

Cathie Wood says Trump’s tariffs could unlock tech...

May 19, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Oil and natural gas: Oil is moving away from the weekly high

    August 28, 2024
  • Nissan could face cost-cutting ‘carnage’ in Honda merger, Carlos Ghosn says

    December 25, 2024
  • EURGBP and EURCHF: EURGBP down on Monday to 1.84150

    July 22, 2024
  • Asian Stocks Plunge Amid Global and US Recession Fears

    August 5, 2024
  • ICC rejects Israeli appeals, issues arrest warrants for Benjamin Netanyahu, Yoav Gallant

    November 21, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,721)
  • Investing (624)
  • Stock (773)

Latest Posts

  • House GOP unveils Medicaid work requirements in Trump’s ‘big, beautiful bill’

    May 12, 2025
  • US must stand up to terrorists and we need Supreme Court and Congress to do their part

    March 28, 2025
  • Cathie Wood says Trump’s tariffs could unlock tech and healthcare growth

    May 19, 2025

Recent Posts

  • Biden says he is still considering pre-emptive pardons for Trump targets Liz Cheney, Fauci and others

    January 8, 2025
  • Ex-Pentagon aide urges Trump to fire Hegseth, citing ‘full-blown meltdown’ and ‘total chaos’

    April 21, 2025
  • Blinken arrives in Israel as Biden-Harris admin faces scrutiny over compromising Jerusalem’s security

    October 22, 2024

Editor’s Pick

  • ‘Deregulatory flavor’: JD Vance lays out vision in Paris for the future of AI under Trump

    February 11, 2025
  • Irish leaders boycott Washington St Patrick’s Day events over Trump’s Gaza comments

    February 24, 2025
  • Hegseth faces latest battle defending his defense secretary post at the Pentagon

    April 24, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock