Wedbush Securities has upgraded its price target for Coinbase Global Inc (NASDAQ:COIN) to $250 from $200 after the cryptocurrency exchange’s strong first quarter.
Nasdaq-listed Coinbase reported net revenues totalling $1.59 billion for the quarter ended March 31, 2024, compared to $736.4 million for the same period last year.
This significant growth was driven by increases in both transaction and subscription and services revenue alongside bitcoin’s 58% rally in the reporting period.
Net income came to $1.18 billion, a notable turnaround from a net loss of $78.9 million in the previous year.
Wedbush called Coinbase’s $334.7 billion of on-platform assets a “huge beat” compared to expectations of $251.7 billion.
Analysts also highlighted Coinbase's success in covering approximately 80% of the estimated total futures volumes globally.
Despite the strong quarter, Coinbase shares are expected to fall 4.5% to $218.4 when US markets open on Friday, but Wedbush sees the stock outperforming over the next 12 months.
However, that is contingent on how the cryptocurrency markets perform, which, as history shows, is difficult or impossible to predict.