H.C. Wainwright analysts have raised their price target for Coinbase to $350 following a strong fourth-quarter earnings report, citing the company’s market share gains and bullish management outlook.
Coinbase reported $2.27 billion in revenue for Q4 2024, marking an 88% increase quarter-over-quarter and a 138% rise year-over-year. The results exceeded Wall Street estimates of approximately $1.8 billion, according to an analyst note shared with crypto.news.
CEO Brian Armstrong described the current market environment as “a golden age for crypto,” emphasizing that increased regulatory clarity post-election has been a key driver of industry growth.
Trading volumes surged 132% quarter-over-quarter to $439 billion, with retail trading volume jumping 176% to $94 billion and institutional trading volume rising 128% to $345 billion.
H.C. Wainwright analyst Mike Colonnese argued the company is well-positioned to take advantage of favorable trends, and despite a nearly 75% gain over the past year, the stock is still undervalued relative to its fair valuation.
“All said, we remain buyers here and are raising our price target to $350 from $330,” the note read.
The analyst’s price target is based on 11.5 times EV/revenue multiple applied to his 2025 revenue estimate which was lifted from $7.34 billion to $8.4 billion.
New customers and profitable subscriptions
The company’s monthly transacting users grew 24% to 9.7 million, with half of its trading customers either new or reactivated after more than a year of dormancy.
Subscription and services revenue also exceeded expectations, coming in at $641.1 million, fueled by blockchain rewards and increased Coinbase One subscriptions.
For Q1 2025, Coinbase is projecting subscription and services revenue between $685 million and $765 million, surpassing consensus estimates of $648 million. The company also expects continued strength in USDC and higher marketing expenditures.
Analysts believe Coinbase is positioned to benefit from the evolving regulatory landscape and rising crypto adoption, projecting 28% revenue growth in 2025 to $8.4 billion.
Shares of Coinbase last traded at $276.50 on the Nasdaq.
