HCW analyst raises price target on Coinbase stock after its strong Q1 report
- Coinbase reported strong results for its first financial quarter last week.
- HCW analyst Mike Colonnese now sees upside in “COIN” to $77.
- Coinbase stock is already up about 85% versus the start of the year.
Coinbase Global Inc is trading up this morning after an H.C. Wainwright analyst raised his price objective on the largest U.S. based crypto exchange.
Coinbase stock has upside to $77
Mike Colonnese now sees upside in the Coinbase stock to $77 that suggests it could climb another 25% from here.
The bullish call arrives only days after the crypto company reported solid results for its first financial quarter. What thrilled this analyst in particular was improvement in terms of the retail take rate.
Coinbase increased spreads to drive over a 13-bps sequential increase in blended average retail take rate to 1.68%. So, we view its pricing power as very encouraging.
Colonnese is bullish on Coinbase Prime as well that saw record volumes in the first quarter. Shares of Coinbase Global Inc are already up 85% for the year at writing.
Coinbase shares have positive risk-reward
The H.C. Wainwright analyst now expects the Nasdaq-listed firm to generate $3.04 billion in revenue this year.
Earlier this year, Coinbase received a “Wells Notice” from the U.S. Securities and Exchange Commission. But Colonnese remains constructive based on what executives said on the earnings call.
Management said the company is 100% committed to U.S. and is optimistic on U.S. getting crypto regulation right, citing strong bipartisan support to introduce new legislation.
All in all, he sees positive risk-reward in the Coinbase stock especially considering the ongoing recovery in crypto prices at large and the international exchange this company launched earlier this month in Bermuda.
The post HCW analyst raises price target on Coinbase stock after its strong Q1 report appeared first on CoinJournal.
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