Coinbase (COIN) closed out 2024 with strong business momentum, fueled by a rebound in sentiment within the digital asset industry, according to a research report by broker JMP released Thursday, following the crypto exchange’s fourth-quarter results.
JMP increased its price target for Coinbase to $475 from $400 while maintaining its “market outperform” rating. The stock, however, fell 1.3% to $294.30 in early trading after a strong 8.4% rally the previous day.
The analysts at JMP, led by Devin Ryan, suggested that Wall Street might be underestimating Coinbase’s future potential.
“If transaction trends continue, first-quarter 2025 revenues could surpass current street estimates by almost 30%,” the report noted.
JMP also highlighted a “seismic shift” underway in the crypto industry, signaling that Coinbase’s current momentum may not fully capture the transformations that are still unfolding.
With a favorable regulatory environment, JMP forecasts that Coinbase will experience substantial growth, projecting that the company could significantly expand its size in the next five years.
