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Mizuho increased its price target on Coinbase (NASDAQ:) from $84 per share to $145 and maintained an “Underperform” rating on the stock in a note on Friday.
In the note titled “HODLers Win the Quarter,” analysts at Mizuho said strong spot volumes following the launch of the BTC ETF — particularly in altcoins — could boost Coinbase’s first-quarter consensus revenue by nearly 40%, “like “It is the case with private investors with high margins.” drawn into an environment of rising crypto prices.”
However, even with a favorable short-term scenario, Mizuho believes that COIN's long-term fundamental concerns remain.
“These include potential downward pressure on retail fee rates (similar to equities) and a heavy reliance on lower-quality and cyclical revenue streams such as altcoins, staking and interest income,” the company explained.
Mizuho values COIN at 18 times its 2025E EBITDA, which it believes represents a generous premium to payments, exchange and asset manager peers, but represents a significant discount to its current 26x multiple.
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