Coinbase Global Inc. (COIN) PT Raised to $180 at US Tiger Securities, 'Anticipated BTC ETF Approval Volatility Poised to Boost'

US Tiger Securities analyst Bo Pei raised the price target on Coinbase Global Inc. (NASDAQ: COIN) to $180.00 (from $150.00) while maintaining a Buy rating.

The analyst comments "Ahead of COIN's 4Q:23 earnings, we maintain our BUY rating and increase price target to $180 (from $150), primarily on increased crypto asset price and volatility as the market approaches the deadline for spot Bitcoin ETF approval. According to The Block, total spot trading volume on major CEXs in 4Q was $2.44 trillion, up 107% q/q and 11% y/y, as total crypto market cap rose over 55% during the quarter, with volatility also up meaningfully. As a result, COIN's 4Q trading volume increased 99% q/q and 4% y/y to $151B, slightly above 1Q:23 volume of $145B. We'd note that while $151B is the best quarterly volume since 4Q:22, it is still meaningfully lower than $547B in 4Q:21, implying significant upside as the bull run continues. Our models now project a 4Q trading volume of $151 billion, 58% higher than our previous estimate. But we revised retail trading fees down to 1.68% from 2.30%, as more advanced traders (with lower fees) returned to the platform when BTC broke through several key levels, resulting in retail trading revenue of $385 million, 19% higher than previous. Our estimate for 4Q blockchain rewards revenue is $96.8 million, reflecting a 30% increase q/q, primarily driven by higher ETH price. We anticipate 4Q stablecoin revenue of $170 million, a slight decrease from 3Q, primarily due to lower USDC circulation. Moreover, market volatility is likely to persist around the SEC's impending decision on spot Bitcoin ETFs, potentially boosting 1Q trading volumes. December saw Coinbase International Exchange's derivatives volume hit a record $7.6B, a 52% increase from November. Emphasizing our long-held view, we maintain that the crypto market has entered a new bull cycle, set to continue through 2024 despite possible corrections, and COIN now benefits from a more diversified product portfolio in this phase."

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