Coinbase Global (COIN – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst Ed Engel from Compass Point upgraded the rating on the stock to a Hold and gave it a $195.00 price target.
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Ed Engel has given his Hold rating due to a combination of factors influencing Coinbase Global’s performance. One of the primary reasons is the potential for a short-term increase in Altcoin prices, which could boost retail trading activity. However, despite this potential, Altcoins still face significant structural challenges that could hinder their price performance.
Additionally, while the broader crypto market is showing signs of recovery, the decoupling of Coinbase’s fundamentals from Bitcoin prices suggests that Altcoin dynamics are more critical for the company’s earnings. Retail trading and USDC-related income remain key profit drivers for Coinbase, but the decline in Altcoin prices has negatively impacted retail sentiment. Furthermore, the use of USDC for payments is still in its early stages, adding uncertainty to Coinbase’s revenue prospects.
In another report released on May 9, J.P. Morgan also maintained a Hold rating on the stock with a $215.00 price target.