Equity analysts at Needham & Company have increased their price target for Coinbase to $420 per share, up from the previous target of $375.
Equity analysts at Needham & Company have increased their price target for Coinbase to $420 per share, up from the previous target of $375.
This adjustment comes alongside significant trading activity in December, particularly a spike in altcoin transactions, which the firm attributes to a resurgence of retail interest in the cryptocurrency market.
In a statement, the analysts noted that December volumes are on course to be the highest ever recorded, driven by heightened volatility in the market, particularly with Bitcoin trading around $100,000. "The price target increase is driven by significant retail activity returning to the crypto market," the report stated.
Coinbase, which has seen its shares rise over 80% this year, experienced a dramatic increase in stock value following the presidential election in November.
The election results led to a surge in Bitcoin prices, contributing to the overall growth in the cryptocurrency market, and making Coinbase an attractive option for many investors looking to invest indirectly in cryptocurrencies.
The analysts from Needham project strong financial results for Coinbase, anticipating total trading volume to reach $435 billion in the fourth quarter of 2024, with revenue estimated at $2.1 billion and earnings per share (EPS) of $2.37. For the year 2025, they forecast revenue could climb to $8.9 billion, with an EPS of $9.61.
As of 5:28 p.m. UTC on Dec. 9, Coinbase shares were trading at $316.01, down 8% for the day, according to Yahoo Finance.
This decline comes after a notable rise in stock prices, which increased from below $200 to over $300 in the period surrounding the election. Needham maintains a "buy" rating on the stock, reflecting confidence in its future performance.
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