Benchmark maintains Buy on Coinbase stock, target at $252

On Monday, Benchmark analysts reaffirmed their Buy rating on shares of Coinbase Global Inc. (NASDAQ:COIN), with a consistent price target of $252.00. The endorsement comes following a period of investor inquiries regarding Coinbase’s business operations, expansion plans, and market stance in the digital asset arena. With a current market capitalization of $51 billion and a P/E ratio of 19.3, InvestingPro data shows the company has achieved remarkable revenue growth of 115% over the last twelve months.

Since initiating coverage of Coinbase with a Buy rating and the $252 price target, Benchmark has engaged with investors to address numerous questions about the company. The analyst’s commentary highlighted the recent interactions with investors, noting, "During the week and a half since we initiated coverage of Coinbase Global (COIN) with a Buy rating and a price target of $252, we have received a variety of questions from investors about the company’s business model, growth strategy, and competitive positioning within the digital asset space." According to InvestingPro’s comprehensive analysis, Coinbase maintains a GREAT overall financial health score, with particularly strong metrics in profitability and cash flow management.

Coinbase, which operates a platform for buying, selling, transferring, and storing digital currency, has been under scrutiny as the cryptocurrency market continues to evolve. The company has made efforts to diversify its revenue streams and strengthen its position in the competitive landscape of digital assets. Benchmark’s report aims to clarify these points and provide investors with detailed insights into Coinbase’s strategic direction. InvestingPro analysis reveals the company maintains a healthy current ratio of 2.28, indicating strong ability to meet short-term obligations.

The reaffirmation of the Buy rating suggests that Benchmark analysts remain confident in Coinbase’s potential to succeed in the dynamic and growing industry of digital assets. This confidence is underlined by the maintained price target, which implies a positive outlook on the company’s value.

Coinbase’s stock performance will continue to be watched closely by investors as the company navigates the complexities of the digital asset market and strives to fulfill its growth strategy amidst the industry’s competitive pressures.

In other recent news, Coinbase Global Inc. has been the focus of several analyst revisions and strategic developments. Rosenblatt Securities adjusted its price target for Coinbase to $260, maintaining a Buy rating, citing a cautious outlook due to reduced trading volumes and non-trading revenue projections below company guidance. Similarly, Citi analysts lowered their price target to $270 while retaining a Buy rating, noting a 4% lower net revenue estimate for the first quarter of 2025 compared to consensus. In contrast, Compass Point downgraded Coinbase to a Sell rating, setting a new price target of $180, and expressing concerns over competition and anticipated disappointing first-quarter results.

Coinbase’s strategic initiatives include an expanded partnership with PayPal (NASDAQ:PYPL) Holdings, aiming to enhance the adoption of the PayPal USD stablecoin. This collaboration allows Coinbase users to engage with PYUSD without platform fees and explores new applications in decentralized finance. Additionally, Coinbase Credit, a subsidiary of Coinbase, has provided Riot Platforms (NASDAQ:RIOT) with a $100 million credit facility to support its growth initiatives, marking Riot’s first bitcoin-backed financing.

These developments highlight Coinbase’s ongoing efforts to navigate a challenging market environment while exploring new opportunities in the digital currency space.

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