Coinbase Stock Analysis: Is $450 Target Achievable After Strong Earnings?

Coinbase (COIN) recently reported strong first quarter earnings for FY24, surpassing the Wall Street EPS estimate by over 400%. The COIN stock jumped over 8% ahead of the earnings call. However, the after market hours showed a different picture with a 3% decline despite the robust earnings report.

Will Coinbase Stock Attain The Peak Target Of $450?

The peak rating for Coinbase stock by analysts is $450. Currently, analysts are bullish on the COIN stock performance after the impressive Q1 earnings report. According to MarketWatch, consensus analysts advise investors to ‘hold’ the Coinbase stock, indicating a potential upside this year with the inherent risk factor in play

On the other hand, 10 analysts have offered a ‘buy’ rating while only 3 provided a ‘sell’ rating. Moreover, the Wall Street analysts perceive the Coinbase stock as undervalued or underweight since none of them have deemed it as ‘overweight.’

This suggests that the Coinbase stock is poised for a bullish run before it attains a fair value. As of yet, the Coinbase stock price is way lower than the average target price of $240.78, setting the stage for an uptick. However, analysts have offered a target of $110 for the COIN stock on the low side, hence, the risk isn’t completely erased.

Earlier, ahead of the May 1 FOMC meeting, the Coinbase stock value plunged below $200, clocking a monthly decline of about 20% fuelled by the crypto market correction. On the contrary, the stock has surged nearly 46% year-to-date owing to the increased investor confidence due to the Spot Bitcoin ETF launch and the crypto bull run.

Also Read: Breaking: Coinbase Q1 Revenue Doubles To $1.58B

Analyst Offers $1,000 Target

Therefore, analysts also stated that a $1,000 per share target is also achievable in the long run. Seth, an economist who provides stocks and crypto insights on X, offered a bullish outlook on the Coinbase stock. He noted that a $1,000 target for COIN is not even that bullish as it seems quite attainable.

The economist cited the launch of Spot Bitcoin ETFs as the biggest reason for the impending rally. He noted that “90% of all Bitcoin Spot ETF are held by Coinbase,” which is positive for the crypto exchange’s stock value. In addition, he highlighted that the CEX holds 1 million BTC as a custodian for renowned institutional investors, including ETF issuers.

COIN Stock Performance

Ahead of the latest earnings report, the COIN stock surged 8.33% and closed at $228.85 on Thursday, May 2. However, after the earnings call, the market wasn’t satisfied with the overall report and the stock lost significant value in the after hours, which continued in Friday’s pre-market session.

The Coinbase stock lost 3.51% and traded at $220.82 at the time of writing in the pre-market session. Hence, there are chances that the stock could open at a gap down on Friday. However, the latest rally erased significant losses recorded in April as the monthly drop now stands at around 9%.

Moreover, in the past 6 months, the crypto exchange witnessed its stock gain over 166% from a price of around $85. Thereafter, several stock analysis firms upgraded the COIN stock rating. This includes well-established firms like JP Morgan and Goldman Sachs. Furthermore, Zacks Investment Research analysts have offered a ‘Strong Buy’ rating for Coinbase due to its phenomenal performance lately and the optimistic future trajectory.

Also Read: Coinbase Talks About SEC Lawsuits and Political Donations In Investor Letter