Equity analysts at Needham & Company have recently made a significant decision reflecting surging crypto market confidence. On Monday, these analysts raised the price target for Coinbase Global, Inc’s stock COIN to $420 per share.
The revised estimate represents a notable increase from the firm’s $375 target. This increase reflects the growing optimism around Coinbase’s performance. This is largely driven by strong activity in the crypto market, particularly in December.
Crypto Market Activity Drives Coinbase Price Target Increase
The analysts attributed the boost to a major surge in retail activity within the crypto market. The exchange’s trading volumes are on track to reach record levels. This makes it one of the most active months for crypto trading in Coinbase’s history.
The analysts pointed to Bitcoin’s volatility, particularly as its price approached $100,000, as a key factor driving the surge in market activity. They also highlighted the growing interest in altcoins, contributing to the boost. This combination of factors has led to a significant increase in trading volume across the crypto market.
Coinbase’s Strong Year and Surge in Share Price
Coinbase’s stock has soared more than 80% in 2024, reflecting the broader growth in the crypto market. The company saw a significant sharp uptick in its share price. This surge follows Donald Trump’s unexpected victory in November’s presidential election.
Trump’s victory catalyzed a rally across digital assets, pushing Bitcoin past the $100,000 mark. This sparked renewed investor interest in crypto. Many investors view Coinbase’s stocks as an easy way to access the crypto market.
Its strong infrastructure and market dominance make it a popular choice for those wanting to profit from crypto’s rise without managing digital assets directly.
Looking Ahead: Strong Predictions for Q4 and 2025
Needham’s analysts expressed optimism about Coinbase’s financial trajectory. The analysts forecasted significant results for Q4 2024 and into 2025. Needham’s analysts predicted that Coinbase will continue to post strong financial results in the near future.
For the fourth quarter of 2024, they predict the company will report $435 billion in trading volume and generate $2.1 billion in revenue. They expect the company’s stock earnings to reach $2.37 per share.
Looking ahead to 2025, they forecast the company will earn $8.9 billion in revenue and report earnings per share of $9.61. Despite these optimistic predictions, Coinbase’s stock fell 8% on Monday, trading at $316.01 by midday.
However, this dip does not overshadow the strong growth the company has experienced this year. Its share price has surged from under $200 to over $300, especially following the election. This highlights the strong momentum behind the company’s stock.
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