Coinbase’s Subscription Gains, Deribit Acquisition, Blockchain Revenue Strength Prompt Analyst Support
Wall Street analysts rerated Coinbase Global, Inc (NASDAQ:COIN) on Friday after the company reported disappointing first-quarter results on Thursday.
Rosenblatt analyst Chris Brendler maintained Coinbase Global with a Buy and a $260 price target.
Needham analyst John Todaro reiterated Coinbase Global with a Buy and lowered the price target from $330 to $270.
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Rosenblatt: Revenue of $2.03 billion missed consensus of $2.10 billion by ~3% but came in slightly higher than Brendler’s estimate.
Despite multiple attempts to anticipate trading weakness, transaction revenue still missed the analyst’s below consensus estimate ($1.26 billion versus his $1.30 billion) as high-yielding Consumer volumes were in line, but take rates declined more than expected in both Consumer and Institutional.
On a positive note, MTUs of 9.7 million exceeded expectations (consensus 9.2 million), showing strength in platform engagement even as spot trading volumes declined sequentially.
In Brendler’s recent initiation, expanding opportunities outside the core trading business represented a key component of his thesis, as these largely recurring revenue streams should boost the multiple. This quarter, the analyst saw trading weakness more than offset by strength in Subscription and Services Revenue as Stablecoins were even better than …
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