Bank of America (BofA) analyst Craig Siegenthaler reviewed his ratings on cryptocurrency exchange platforms, Coinbase Global (COIN) and Robinhood Markets (HOOD) following their second-quarter results. The top analyst views Robinhood as the better crypto play compared to Coinbase, having updated his models in the brokers, asset managers, and exchanges group to reflect the Q2 reports.
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Siegenthaler is a five-star analyst on TipRanks, ranking #82 out of the 9,897 analysts tracked. He boasts a 64% success rate and an average return per rating of 18.80%. Remarkably, his best rating to date has been on Robinhood Markets stock, where he assigned a Buy recommendation on August 12, 2024, and has remained at that rating since. This bullish call has earned him a massive average return of 438.80%.
BofA Raises HOOD’s Price Target
Siegenthaler raised his price target on HOOD stock from $112 to $119, implying 19.1% upside potential from current levels. He maintained a “Buy” rating on HOOD, reflecting his optimistic view of the company’s long-term growth potential. The analyst was highly encouraged by Robinhood’s 40% beat on earnings, which he attributes to improved sales and effective expense management strategies.
Robinhood’s earnings per share (EPS) of $0.42 surpassed analysts’ consensus estimate of $0.31 per share. Additionally, sales jumped 45% year-over-year to $989 million, exceeding expectations of $914.6 million. The consistent rise in Bitcoin prices has helped Robinhood generate higher revenue from interest-earning assets and growing transaction volumes.
BofA Slashes COIN’s Price Target
Siegenthaler slashed Coinbase Global’s price target to $369 from $383, implying 17.3% upside potential from current levels. However, he maintained a “Hold” rating on COIN, signaling a cautious stance on the cryptocurrency exchange. The analyst was discouraged by Coinbase’s earnings miss.
On July 31, COIN stock plunged over 16% after the company reported a huge EPS miss for the second quarter. Coinbase recorded EPS of $0.12, significantly below the consensus estimate of $1.25 and down from last year’s $0.14 per share. Meanwhile, sales rose 3.3% year-over-year to $1.5 billion, missing analysts’ expectations of $1.59 billion. Coinbase’s trading volumes fell 40% compared to the prior quarter, due to lower volatility in crypto markets as investors pulled back from non-Bitcoin assets.
Which Is the Best Crypto Exchange Stock?
We used the TipRanks Stock Comparison Tool to determine which stock is more favored by analysts. Currently, Wall Street has a “Moderate Buy” consensus rating on both stocks, with COIN offering higher upside potential over the next 12 months.
