Benchmark cuts Coinbase price target by 37% but says business is ‘more diversified and durable’ than ever

Benchmark analyst Mark Palmer reduced the Coinbase (COIN) price target by 37% to $267 from $421, despite reiterating a buy rating, following the company's Q4 earnings miss on revenue and profit. Palmer noted that while headline figures were weak, the underlying business is becoming "more diversified and durable." This strength is evidenced by a 37% sequential jump in institutional transaction revenue, boosted by the Deribit acquisition, and stablecoin revenue holding steady. Subscription and services revenue now constitutes about 43% of net revenue, signaling a successful shift away from transaction fees, with 12 products generating over $100 million annualized revenue. Palmer views the tension in the stock as its short-term correlation to crypto volatility versus its long-term goal of becoming an "Everything Exchange," evidenced by new offerings like equities trading. Other firms showed mixed reactions, with Bernstein remaining bullish and Canaccord maintaining a buy, while Piper Sandler downgraded to neutral.

(Source：The Block)