Keefe, Bruyette & Woods lowers Coinbase stock price target on revenue miss

Published 04/08/2025, 15:38
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Investing.com - Keefe, Bruyette & Woods lowered its price target on Coinbase Global Inc. (NASDAQ:COIN) to $335.00 from $355.00 on Monday, while maintaining a Market Perform rating on the cryptocurrency exchange.

The price target reduction follows Coinbase’s quarterly revenue miss, with total net revenues of $1.42 billion falling 8.9% below the research firm’s estimate of $1.56 billion and below the consensus expectation of $1.50 billion. Despite the miss, the company maintains strong fundamentals with an 84.5% gross profit margin and $6.7 billion in trailing twelve-month revenue.

According to Keefe, Bruyette & Woods, the revenue shortfall was primarily driven by lower retail trading volumes and reduced blockchain staking revenue. The company’s adjusted EBITDA of $512 million also missed the firm’s estimate of $649 million and consensus of $564 million.

The research firm cited a lower subscription guidance than expected and higher expense projections for the third quarter as Coinbase increases investments amid the current macroeconomic and regulatory environment.

Keefe, Bruyette & Woods lowered its out-year EBITDA estimates for Coinbase, which contributed to the reduction in the price target.

In other recent news, Coinbase Global Inc. reported its earnings for the second quarter of 2025, which fell short of forecasts. The company posted an earnings per share (EPS) of $0.12, significantly below the expected $1.51, resulting in a 92.05% negative surprise. Additionally, revenue was reported at $1.5 billion, missing the forecasted $1.59 billion by 5.66%. Despite the earnings miss, Citizens JMP has maintained its Market Outperform rating on Coinbase, with a price target of $440. The firm highlights that Coinbase shares are currently trading at approximately 20 times the enterprise value to 2026 adjusted EBITDA estimate. These developments indicate that analysts remain optimistic about Coinbase’s future performance despite the recent earnings miss.

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