• Earnings for Coinbase’s fourth quarter beat analyst expectations.
  • KBW upgraded its stock from underperform to market perform.
  • Premarket trading saw shares surge up to 15%.

Yesterday, after the close of the markets, cryptocurrency exchange Coinbase (COIN), reported earnings for its fourth quarter. This beat consensus estimates. Stocks surged 15% in Friday’s pre-market trade as Wall Street analysts raised their price targets and upgraded the stock.


What they said about

KBW raised its price target from $93 to $160 and upgraded Coinbase from underperform to market perform.

The bank said it is “skeptical that the current level of retail enthusiasm/speculative activity can persist for a prolonged period.” Still, it upgraded the stock to reflect higher crypto prices year-to-date and the positive knock-on effect on revenue. The bank also cited a positive impact from the “material inflection in USD Coin’s (USDC) growth of 15% in this year.

Wedbush raised its price target from $180 to $200 and reiterated that it is a strong performer.

The firm stated that the results “adequately addressed the bear arguments about COIN.” No fee compression was apparent or cannibalization by exchange-traded fund (ETFs) and the exchange continued to reduce its retail and trading exposure while increasing its institutional exposure.

Canaccord Genuity raised its price target from $140 to $240, maintaining its buy rating. The firm pointed to positive tailwinds in the business as well as the industry.

JMP Securities maintained its Outperform rating but increased its price target from $200 to $220. JMP Securities said that it was encouraged by the performance of the exchange in its fourth quarter and by its outlook.

Mizuho Securities’ bullishness was reduced. After the earnings report the firm stated that it was cautious with Coinbase shares. It added that although the firm’s revenue and EBITDA exceeded estimates, the “consensus” was “out of tune.” The retail take rate fell by 80 basis point quarter-on-quarter.

The investment bank reiterated their underperform rating with a $60 price target.

Read more: Coinbase upgraded to neutral ahead of earnings at JPMorgan, as shares surge

Sheldon Reback is the editor.