UPDATE: Compass Point Starts Coinbase Global Inc. (COIN) at Neutral

May 13, 2021 5:15 AM EDT
Get Alerts COIN Hot Sheet
Price: $51.18 --0%

Rating Summary:
    15 Buy, 6 Hold, 4 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 10 | Down: 21 | New: 51
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(Updated - May 13, 2021 5:25 AM EDT)

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."

For an analyst ratings summary and ratings history on Coinbase Global Inc. click here. For more ratings news on Coinbase Global Inc. click here.

Shares of Coinbase Global Inc. closed at $283.61 yesterday.

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