B Riley Initiates Coverage of Coinbase (NASDAQ:COIN)
Rating: Neutral
Price Target: $185 (12-month)
B Riley analysts have begun coverage of Coinbase (NASDAQ:COIN) with a Neutral rating, highlighting optimism about the crypto exchange while noting valuation concerns and regulatory uncertainty.
The analysts set a 12-month price target of $185, based on a 50x multiple of its 2025 EPS estimate. According to B Riley, "COIN is the industry leader and a trusted platform for institutions and individuals to invest and transact in the growing digital currency economy."
They underscored Coinbase's unique position as a first mover in the shift toward digital assets and as a "well-capitalized scale operator" in the capital markets sector. B Riley described the broader trend toward cryptocurrency adoption as "a once-in-a-generation global shift" from traditional fiat money to network-based currencies, while cautioning that this transition is still in its early stages.
The report also indicated that Coinbase's earnings have historically been volatile, impacted by a strong correlation with digital asset prices like Bitcoin. "Since going public, COIN's EPS power has been volatile, swinging from strong profits to losses and vice versa," B Riley stated.
Despite Coinbase’s leading position in the crypto space, the analysts expect the stock to trade in a narrow range for the foreseeable future. They stated, "We expect COIN shares to remain range-bound until the election is decided and regulatory clarity is provided or until better idiosyncratic catalysts emerge that provide visibility into more consistent profit growth."
Thus, B Riley’s neutral stance reflects a wait-and-see approach as investors look for more stable profit growth and clearer regulatory signals for the cryptocurrency sector.
Comments (0)