Coinbase stock rating reiterated at Buy by Benchmark despite weak Q2

Investing.com - Benchmark has reiterated its Buy rating and $421.00 price target on Coinbase Global Inc. (NASDAQ:COIN) following the cryptocurrency exchange’s weaker-than-expected second-quarter 2025 operating results. The company, currently valued at $81.8 billion, has demonstrated strong financial performance with a 49% year-over-year revenue growth and maintains a healthy current ratio of 2.13.

The cryptocurrency exchange experienced a sharp selloff on Friday after reporting disappointing quarterly performance, with short-term traders reacting negatively to the results.

Despite the negative market reaction, Benchmark maintains its positive outlook on Coinbase, suggesting investors with longer time horizons may benefit from viewing the recent results as a temporary setback rather than a fundamental problem.

Benchmark views Coinbase as being "on the precipice of transforming from a crypto exchange into core financial infrastructure" that will power mainstream digital asset adoption.

The research firm specifically recommended that investors use the recent share price decline as a buying opportunity, highlighting that there are multiple ways Coinbase is building a cryptocurrency ecosystem and positioning itself for industry leadership.

In other recent news, Coinbase Global Inc. reported its second-quarter 2025 earnings, which showed a significant shortfall in both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $0.12, far below the anticipated $1.51, representing a 92.05% negative surprise. Revenue also missed expectations, totaling $1.5 billion against a forecast of $1.59 billion, a 5.66% shortfall. In response to these results, Keefe, Bruyette & Woods lowered its price target for Coinbase to $335.00 from $355.00, while maintaining a Market Perform rating. The firm noted that Coinbase’s total net revenues of $1.42 billion fell 8.9% below its estimate and were also below the consensus expectation of $1.50 billion. Meanwhile, Citizens JMP reiterated its Market Outperform rating and maintained a $440.00 price target, highlighting that Coinbase shares trade at about 20 times the enterprise value to the 2026 adjusted EBITDA estimate. These developments provide a varied outlook on Coinbase’s financial performance and future potential.

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