Coinbase: Canaccord Lifts Target To $342 After Q3 Results

On November 9th, Coinbase Global, Inc. (NASDAQ: COIN) announced its third quarter financial results. The company reported quarterly revenues of $1.31 billion in revenues, down 41% quarter over quarter. Gross profit saw the same fate, dropping from $1.89 billion last quarter to $1.11 billion this quarter. Operating profit saw a 66.2% quarter-over-quarter drop to $295.31 million.

The disappointing results were primarily a function of the company’s total trading volume and the number of active users dropping by 29% and 16% quarter over quarter respectively. Total trading volumes went from $462 billion on the platform at the end of the second quarter to $327 billion at the end of the third quarter, while monthly users went from 8.8 million to 7.4 million during the same time.

A number of analysts changed their 12-month price target, bringing the average to US$406.20 or 21% upside to the current stock price. Coinbase Global has 23 analysts covering the stock with 6 having strong buy ratings, 11 have buy ratings, 5 have hold ratings and a single analyst has a sell rating on the stock. The street high sits at US$600 from Moffettnathanson while the lowest comes in at US$275.

In Canaccord’s third quarter review they reiterate their buy rating and raise their 12-month price to US$342 from US$325. They believe that the third quarter results will be a blip and recover swiftly in the fourth quarter, writing, “We like that Coinbase is aggressively adding new digital assets to its platform to further diversify its trading business away from Bitcoin and Ethereum.”

Canaccord points out that even with Coinbase’s quarterly results disappointing investors, they continue to make acquisitions and solidify its leading position. They specifically liked that Coinbase has added NFT’s and direct deposits to the suit of items.

For the results, Canaccord says that the third quarter results were a result of a slow start during the quarter due to low volatility and declining spot prices. They note that volatility is the key driver in Coinbase’s revenue as retail investors tend to make more trades when there is more volatility. Although this quarter was tough for Coinbase, Canaccord says that the company saw a 41% increase in subscription and services revenue.

Lastly, Canaccord says that the company continues to accelerate its new assets to buy on its platform. With Coinbase adding 30 new assets to trade, 19 assets for custody, bringing the total to 103 for trading and 158 for staking.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

Kirkland Lake: Canaccord Maintains $68 Price Target, Buy Rating

On Wednesday, July 1, during market hours Kirkland Lake Gold (TSX: KL) reissued it’s 2020...

Thursday, July 2, 2020, 12:12:07 PM

Eguana Tech: Raymond James Initiates With $0.75 Price Target

On February 17th, Eguana Technologies (TSXV: EGT) saw a second analyst begin covering the stock,...

Tuesday, February 22, 2022, 12:22:00 PM

Coinbase CEO Expects 2022 Revenue To Be “Roughly Half Or Less”

Coinbase Global (Nasdaq: COIN) CEO Brian Armstrong said the cryptocurrency exchange’s revenue will be slashed...

Thursday, December 8, 2022, 08:45:00 AM

BMO Initiates Coverage On Plug Power, Gives $30 Price Target

On September 30, BMO initiated coverage on Plug Power (NASDAQ: PLUG) with a $30 price...

Sunday, October 3, 2021, 05:10:00 PM

Cineplex: Canaccord Lifts Price Target To $18 On Improving Outlook

On May 13, Cineplex Inc. (TSX: CGX) reported its first quarter financial results. The company...

Friday, May 20, 2022, 04:07:00 PM