UPDATE: Compass Point Starts Coinbase Global Inc. (COIN) at Neutral
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Compass Point analyst Chris Allen initiates coverage on Coinbase Global Inc. (NASDAQ: COIN) with a Neutral rating and a price target of $325.00.
The analyst comments "We are refreshing estimates for 2Q to-date trading activity and an updated MTU/volume outlook. Given the volume strength we have seen quarter to-date, we are raising our 2Q21 EPS estimate to $2.73 from $1.35 and our FY21 EPS to $9.53 from $5.40. As we look out to 2022/2023, we are building in a gradual compression in retail pricing and are adjusting our 2022/2023 EPS estimates to $4.76/$6.31. COIN is currently trading at 30x/60x our 2021/2022 EPS estimate. We are establishing a Neutral rating and $325 PT (14% upside from current levels), which represents a multiple of 34x/68x our 21/22 EPS and 22x/36x '21/22 EV/EBITDA. This compares to the other structural growth stories under our coverage: MKTX which trades at 59x/51x '21/22 EPS and 39x '21 EV/EBITDA and TW which trades at 52x/44x our '21/22 EPS and 36x '21 EV/EBITDA. Near-term, we like the stock given strong 2Q trading volumes and attractive valuation based on current run-rate earnings. But longer-term we have questions, specifically around the rate of compression in retail pricing and the ability of the company to develop/grow other revenue sources to offset that likely compression."
Shares of Coinbase Global Inc. closed at $283.61 yesterday.
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