Citing robust December volumes and a rise in altcoin trading, equity analysts at Needham & Company raised their price target for Coinbase to $420 a share on Monday. The firm's previous price target was $375.
"The price target increase is driven by significant retail activity returning to the crypto market, with December volumes on track to be the highest ever," the analysts said in a statement. "Elevated volatility, particularly with Bitcoin around $100,000, and a rise in altcoin activity are major contributors to this volume surge."
Coinbase's shares are up over 80% this year and rose precipitously after Donald Trump won the presidential election in November. Trump's victory sent bitcoin beyond the $100,000 level while the broader crypto market also benefitted. Investing in Coinbase is seen by many investors as a way to indirectly bet on crypto.
Needham's analysts predict Coinbase will post strong results for both the fourth quarter of 2024 and next year. The analysts have a "buy" rating on the stock.
"For Q4 2024, total volume is expected to reach $435 billion, with revenue at $2.1 billion and EPS at $2.37 per share," said the analysts. "For 2025, revenue is projected at $8.9 billion with an EPS of $9.61 per share."
Coinbase was trading at $316.01, down 8% for the day as of 12:28 p.m. ET, according to Yahoo Finance. The company's shares shot up from less than $200 to over $300 per share in the days around the presidential election.
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