William Blair analyst Andrew Jeffrey has reiterated their bullish stance on COIN stock, giving a Buy rating yesterday.
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Andrew Jeffrey has given his Buy rating due to a combination of factors that highlight Coinbase’s strong position in the evolving cryptocurrency market. The company reported a slightly better-than-expected third quarter, indicating its robust performance. Jeffrey emphasizes that Coinbase is establishing itself as the most secure and comprehensive crypto platform, which is crucial as the market transitions from trading to infrastructure.
Furthermore, Coinbase is capitalizing on the growing $4 trillion crypto ecosystem, balancing growth investments with profitability, as evidenced by a 44.7% EBITDA margin in the third quarter. The company is gaining market share in the U.S., with trading volume and consumer trading revenue showing significant increases. Despite a slight decline in take-rate, the focus on expanding derivatives business and non-transaction revenue streams, such as stablecoins and cross-border payments, positions Coinbase for sustainable long-term growth.
In another report released yesterday, H.C. Wainwright also upgraded the stock to a Buy with a $425.00 price target.