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Investing.com - Erste Group initiated coverage on Coinbase Global Inc. (NASDAQ:COIN) with a Buy rating on Wednesday. The cryptocurrency exchange giant, currently valued at $103 billion, has demonstrated remarkable momentum with a 63% gain year-to-date according to InvestingPro data.
The research firm cited Coinbase’s position as one of the leading cryptocurrency trading platforms serving both private investors and institutional clients. The company’s strong market position is reflected in its impressive 85% gross profit margin and substantial revenue growth of 76% over the last twelve months.
Erste Group noted that Coinbase is benefiting from increasing cryptocurrency adoption, supported by ETF approvals, institutional demand, and enhanced regulation, specifically mentioning the recent Genius Act regarding stablecoins in the United States.
The firm expects Coinbase’s sales to grow faster than the sector in the second quarter and throughout full-year 2025.
Erste Group also highlighted Coinbase’s leading market position, projecting that the company’s operating margin and profit should increase significantly in the medium term.
In other recent news, PNC Bank has announced a strategic partnership with Coinbase to provide digital asset solutions to its clients. This collaboration will enable PNC clients to buy, hold, and sell cryptocurrencies through the bank’s platform, leveraging Coinbase’s Crypto-as-a-Service platform. In another development, Piper Sandler has raised its price target for Coinbase Global Inc. to $350 from $190, citing peer group multiple expansion and a more positive outlook for digital assets. Meanwhile, Cantor Fitzgerald has increased its price target for Coinbase to $500 from $292, maintaining an Overweight rating. This adjustment reflects revised earnings estimates, with projected earnings per share increasing to $10.76. Cantor Fitzgerald attributes this change to the recent cryptocurrency market rally, which has historically led to increased trading volumes on Coinbase’s platform. Additionally, the signing of a bill regulating stablecoins by President Donald Trump has been a significant event for the crypto industry. This regulatory framework is seen as a victory for cryptocurrency supporters, potentially enhancing the legitimacy of the industry.
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