H.C. Wainwright analysts increased their price target for Coinbase Global (NASDAQ:COIN) to $250 from $115, while continuing to recommend a Buy rating.
The analysts highlighted Coinbase’s impressive performance in the fourth quarter of 2023 and for the fiscal year, noting that the company surpassed consensus estimates for both revenue and earnings. Remarkably, Coinbase achieved an EPS profit of $1.04 in the fourth quarter, marking its first profit since the peak of the last cryptocurrency bull market in the fourth quarter of 2021. The company also issued revenue guidance for the first quarter of 2024 that beats consensus predictions, benefiting from robust trading trends across various customer segments and a rally in cryptocurrency prices.
In 2023, Coinbase reported total revenues of $3.1 billion, a slight year-over-year decrease of 3%, significantly reduced its operating expenses by 45%, and achieved $964 million in adjusted EBITDA and $95 million in net income. Noteworthy is the company’s consistent positive adjusted EBITDA throughout 2023, despite a challenging macroeconomic environment and lower crypto trading volumes for much of the year. This accomplishment aligns with Coinbase’s goal of maintaining positive adjusted EBITDA under all market conditions.