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On Friday, Keefe, Bruyette & Woods maintained a Market Perform rating for Coinbase Global Inc. (NASDAQ:COIN) with a steady price target of $255.00. The rating affirmation follows Coinbase's reported earnings, which showcased a significant beat on transaction revenue due to increased retail trading volumes and a higher fee rate. The company's total net revenues, combining transaction, subscription, and services revenue, reached $2.197 billion. This figure exceeded Keefe, Bruyette & Woods' projection of $1.793 billion by 22.5% and was also above the consensus estimate of $1.794 billion.
The outperformance was attributed mainly to a surge in retail trading activity and an increase in the fee rate during the quarter. Coinbase's adjusted EBITDA was another highlight, coming in at $1.289 billion, which not only surpassed Keefe, Bruyette & Woods' estimate of $994 million but also the consensus of $870 million. This represents approximately a 30% beat over Keefe, Bruyette & Woods' expectations and nearly a 48% beat against the consensus.
The firm's commentary noted that the first-quarter-to-date performance remains robust, reflecting the current volume environment. Quarter-to-date average daily volume is tracking 24% above Keefe, Bruyette & Woods' expectations. Furthermore, the implied fee rate for the same period is approximately 35 basis points, outperforming their forecast of 27 basis points.
Coinbase's financial results indicate a stronger than anticipated performance in the cryptocurrency exchange sector. With the company's adjusted EBITDA and total net revenues surpassing both the firm's and the consensus estimates, the reaffirmed Market Perform rating and price target suggest a recognition of the company's solid quarterly outcome while maintaining a cautious outlook on the stock's future movements.
In other recent news, Coinbase Global Inc. has been the subject of various analyst reports. Citi analysts, led by Peter Christiansen, reiterated a Buy rating for Coinbase, with a steadfast price target of $350, following an impressive earnings report that surpassed revenue expectations by 27%. Meanwhile, Oppenheimer maintained an Outperform rating and raised the price target to $388, following a robust fourth-quarter performance by the cryptocurrency exchange.
JMP Securities analysts raised their price target for Coinbase's shares to $475, reflecting confidence in Coinbase's ability to capitalize on positive trends in the cryptocurrency market. Piper Sandler analysts also adjusted their outlook on Coinbase, increasing the price target to $310 from the previous $285, following Coinbase's impressive earnings performance.
In addition to these financial developments, Coinbase has been involved in an ongoing legal battle with the SEC. However, the case has been put on pause due to the formation of the SEC's new crypto task force, which aims to establish a clear regulatory framework for digital currencies.
These are recent developments that highlight the dynamic nature of Coinbase's financial and legal landscape.
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