Analysts rate Coinbase Global Inc.(COIN:NSD) with a Strong Buy,$325 Target

STA Research
by: STA Research

Analysts rate Coinbase Global Inc. stock with a consensus Strong Buy rating and a 12-month average target price of $325.13 per share.

Today Goldman Sachs maintains Coinbase Global Inc. with a Buy rating, and lowers the company’s target price to $240 from $250.

Yesterday JMP Securities maintained Coinbase Global Inc. with a Market Outperform rating, and lowered the target price to  $394 from $405.

Based on the Coinbase Global Inc. stock forecasts from 14 analysts, the average analyst target price for Coinbase Global Inc. is USD 325.13 over the next 12 months. Coinbase Global Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Coinbase Global Inc. is Bullish, which is based on 8 positive signals and 3 negative signals. At the last closing, Coinbase Global Inc.’s stock price was USD 166.19. Coinbase Global Inc.’s stock price has changed by -23.67% over the past week, +5.05% over the past month and +0.00% over the last year.

Coinbase Global, Inc. provides financial infrastructure and technology for the crypto-economy in the United States and internationally. The company offers the primary financial account in the crypto-economy for retailers; a marketplace with a pool of liquidity for transacting in crypto assets for institutions; and technology and services that enable ecosystem partners to build crypto-based applications and securely accept crypto assets as payment. Coinbase Global, Inc. was founded in 2012 and is based in Wilmington, Delaware.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced compared to earnings

Coinbase Global Inc. stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered a better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered a better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

Coinbase Global Inc. stock management has delivered a better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

Coinbase Global Inc. stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

What we don’t like:

Overpriced compared to book value

Coinbase Global Inc. stock is trading high compared to its peers median on a price to book value basis.

Highly leveraged

Compared to its sector peers on debt to equity, the company is in the bottom half and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on a free cash flow basis

Coinbase Global Inc. stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

 

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