Piper Sandler Reiterates Neutral Rating on Coinbase Global Inc. (COIN)
Piper Sandler analyst Patrick Moley reiterated a Neutral rating and $245.00 price target on Coinbase Global Inc. (NASDAQ: COIN).
The analyst comments "COIN posts modest core EPS miss vs. our estimate. Excluding the impact of $319M of pretax M2M losses on crypto assets (due to the adoption of accounting standard 2023-08) and assuming a normalized tax rate of 25%, we calculate core EPS of $0.73, which is slightly below our estimate of $0.75 and below the consensus of $0.95. Total revenues of $1,450M were $113M (~9%) above our est., while operating expenses of $1,107M were $65M (~6%) above our estimate. COIN's adjusted EBITDA of +$596M was above our +$497M estimate. Bottom line, extrapolating July trading revenues for the full quarter, COIN's guidance for 3Q24 implies a significant contraction in the operating margin (we est. ~24% in 2Q24 to ~8% in 3Q24) as the company signaled plans to grow its variable marketing spend and increase headcount in 2H24."
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Shares of Coinbase Global Inc. closed at $212.64 yesterday.