Coinbase Global Inc. (COIN) PT Lowered to $255 at H.C. Wainwright

H.C. Wainwright analyst Mike Colonnese lowered the price target on Coinbase Global Inc. (NASDAQ: COIN) to $255.00 (from $265.00) while maintaining a Buy rating.

The analyst commented: 'After the close on October 30, Coinbase reported its first revenue miss in recent memory in 3Q24, which was largely driven by an unexpected 38 bp sequential decline in its blended average retail transaction take rate during the quarter to 1.42%. Outside the unexpected drop in retail spreads, which management attributes to a non-structural mix shift towards low (to no) fee stablecoin pair trading volumes during the quarter from its active traders, Coinbase delivered what we view as solid 3Q24 results against a backdrop of lower crypto asset prices and volatility during the quarter. Given good expense controls (opex came in at the low end of the guidance range) and management’s ongoing focus on driving revenue diversification (Subscription and Services accounted for about half of total net revenues in 3Q), Coinbase was able to deliver positive adjusted EBITDA for the seventh consecutive quarter despite softer market conditions. Meanwhile, 4Q24 revenue and expense guidance was in-line to slightly worse-than consensus forecasts going into the print. All said, we expect shares to trade lower in today’s session on the top-line miss and potential concerns around retail spreads going forward. However, 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. We were encouraged to hear management's positive views on the upcoming election and the implications for the crypto sector. Specifically, CEO Brian Armstrong, believes the U.S. will have the "most pro-crypto Congress ever" regardless of who wins next week's presidential election. Lastly, Coinbase recently initiated a $1B share repurchase program, as the company aims to return capital to shareholders in the future. Reiterate Buy rating while lowering PT to $255 from $295."

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