Wall Street Divided on Coinbase’s (COIN) Path Forward After Q3 Earnings Beat

Coinbase's third-quarter earnings report exceeded expectations, showcasing $1.05 billion in transaction revenue and $801 million in adjusted EBITDA. However, analysts express divided opinions on the company's future. Some analysts, like Clear Street's Owen Lau and Benchmark's Mark Palmer, are optimistic, citing growth in B2B crypto payments and key partnerships that could bolster profitability. Lau raised his target to $415, highlighting Coinbase's strategic collaborations and potential regulatory benefits. Meanwhile, others, including Barclays' Benjamin Budish and Compass Point's Ed Engel, are cautious, flagging rising costs and margin pressures, leading Budish to reduce his target to $357 and Engel to $266. The varying price targets, ranging from $266 to $510, underscore the debate over Coinbase's ability to sustain growth amidst competitive and volatile market conditions. Analysts generally agree on the company's expanding presence in derivatives and stablecoin-related products, emphasizing that Coinbase's ability to evolve amidst market changes will be crucial for its long-term success.

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