Coinbase's Q3 Outlook: Navigating Through Crypto Challenges, Margin Squeeze
Portfolio Pulse from Priya Nigam
Coinbase Global Inc (NASDAQ: COIN) shares dropped in early trading on Friday following mixed analyst reviews. Piper Sandler, JPMorgan, and JMP Securities provided varied ratings and price targets, highlighting challenges such as margin contraction and lower-than-expected earnings, but also noting strong revenue performance and positive adjusted EBITDA.
August 02, 2024 | 4:44 pm
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Coinbase shares fell after mixed analyst reviews. Piper Sandler reiterated a Neutral rating with a $245 price target, noting margin contraction and lower-than-expected EPS. JPMorgan also maintained a Neutral rating with a $181 price target, citing a tough volume quarter but strong revenue. JMP Securities reiterated a Market Outperform rating with a $320 price target, highlighting positive adjusted EBITDA and liquidity growth.
The mixed analyst reviews and the noted challenges such as margin contraction and lower-than-expected earnings are likely to exert downward pressure on Coinbase's stock in the short term. However, strong revenue performance and positive adjusted EBITDA provide some support.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100