On Friday, Oppenheimer analysts adjusted their outlook on Coinbase Global Inc. (NASDAQ:), reducing the price target to $334 from $358 previously.
Despite this drop in the price target, the firm maintained an Outperform recommendation on the crypto exchange platform’s shares.
The revision follows a recent selloff in Coinbase shares since late December, which Oppenheimer analysts see as an opportunity for investors.
The firm’s optimism is based on several key predictions, including a strong performance in the fourth quarter of 2024 and the possibility of upward revisions to earnings estimates for years to come.
Additionally, the possibility of Coinbase being included in the S&P 500 Index in 2025 is cited as a positive factor.
-Analysts also point to a favorable regulatory environment under a pro-crypto president, administration, Congress and SEC, which could further strengthen the company’s prospects. They predict that increased adoption of blockchain for payments and tokenization, as well as increased participation from traditional financial companies, will bring new capital into the sector. Expected IPOs of more blockchain-related companies could also contribute to a more robust market.
The analysts said: “As a leading and specialist crypto player, with optionality in Web3 payment use cases, the stock is a bargain in our view, trading at a discount to HOOD (around 27x EV/EBITDA per consensus forecast). We believe core earnings growth and multiple expansion can drive alpha.”
The firm believes that Coinbase’s core earnings growth, coupled with potential multiple expansion, can generate significant returns for investors.
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