UPDATE: Coinbase Global Inc. (COIN) PT Lowered to $200 at Compass Point, 'Lowering Estimates on Weaker Crypto Env. and Heightened Expense Outlook'
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Compass Point analyst Chris Allen lowered the price target on Coinbase Global Inc. (NASDAQ: COIN) to $200.00 (from $235.00) while maintaining a Neutral rating.
The analyst comments "We are lowering estimates following 4Q21 results to account for the current crypto environment and COIN's expense outlook for 2022, which factors in a much higher level of investment spend than we had been forecasting. Our 2022/2023 EPS estimates move to ($0.96)/($0.80) from $7.27/$7.59. As a result, we are lowering our PT to $200 which represents 13% upside to current levels and 6.1x our 2023 revenue estimate. We have been cautious on COIN in recent periods in large part due to regulatory uncertainty and concerns on the potential for pricing compression (convergence between Coinbase/Coin Pro, increased institutional incentives, and competition over the longer-term). These points persist, and now we have to factor in expense trajectory at levels higher than anticipated, which pushes out profitability expectations. Over time, improved diversification and durability of revenues could overshadow some of these concerns. But for now, we see more negatives than positives and remain Neutral rated."
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