Hold Rating for Coinbase Global Amid Mixed Performance and Strategic Acquisition

Coinbase Global (COIN – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst Ken Shih from DBS maintained a Hold rating on the stock and has a $210.00 price target.

Ken Shih has given his Hold rating due to a combination of factors impacting Coinbase Global’s current and future performance. The company’s revenue in the first quarter of 2025 increased year-over-year but saw a decline quarter-over-quarter, primarily due to lower-than-expected consumer transaction revenue. Additionally, the outlook for the second quarter is not promising, with a shift in volume mix from retail to institutional clients, which typically results in lower margins and affects short-term profitability.
Despite these challenges, Coinbase’s acquisition of Deribit is expected to enhance its revenue potential in the institutional sector and support international expansion over the long term. The company’s user-friendly platform remains a competitive advantage, allowing it to charge higher commissions from retail customers, who contribute significantly to its revenue. Furthermore, while retail transaction volumes have decreased from their peak, they have shown signs of stabilization, which is crucial for near-term share price performance. The target price has been set at USD 270, reflecting an expanded total addressable market and an improved regulatory outlook, though risks such as crypto asset volatility and regulatory challenges remain.

Shih covers the Financial sector, focusing on stocks such as Charles Schwab, AIA Group, and China Life Insurance Co. According to TipRanks, Shih has an average return of 15.2% and a 74.79% success rate on recommended stocks.

In another report released yesterday, Jefferies also maintained a Hold rating on the stock with a $260.00 price target.