COIN a Buy despite Q3 revenue miss, analyst says
Coinbase shares fell after the corporate’s weaker-than-expected third-quarter earnings, however H.C. Wainwright analyst Mike Colonese maintains a purchase ranking on the inventory.
On Oct. 30, Coinbase, the biggest publicly traded crypto trade, launched its third-quarter earnings report, which confirmed an “uncharacteristic top-line miss,” based on Colonese. He famous that this would possibly impression the corporate’s shares within the quick time period.
Nonetheless, regardless of the income miss, largely right down to the lower crypto prices throughout the quarter, the general take is that this was a strong Q3, 2024.
Notably, elements resembling expense controls and income diversification are on the optimistic facet for Coinbase. The following 12 months additionally provide a bullish outlook for crypto costs, with regulatory readability including to potential upside catalysts.
“We have been inspired to listen to administration’s optimistic views on the upcoming election and the implications for the crypto sector. Particularly, CEO Brian Armstrong, believes the U.S. could have the “most pro-crypto Congress ever” no matter who wins subsequent week’s presidential election. Lastly, Coinbase not too long ago initiated a $1B share repurchase program, as the corporate goals to return capital to shareholders sooner or later.”
Mike Colonese stated.
Colonese reiterated a purchase ranking for Coinbase, with a value goal of $255, down from $295, reflecting the revised income estimate for 2025.
H.C. Wainwright analysts have lowered their income estimates for Coinbase, projecting $5.45 billion for 2024 (down from $5.67 billion) and $5.37 billion for 2025 (down from $6.25 billion).
Coinbase reported complete revenues of $1.21 billion within the third quarter, a decline of 17% quarter over quarter however a rise of 86% 12 months over 12 months, barely beneath FactSet estimates of $1.26 billion.
Dangers to H.C Wainwright’s Purchase ranking and goal value of $255 will embody focus of retail buying and selling income, crypto value dump and regulatory uncertainty.
