Coinbase Global Inc. (COIN:NSD) STA Research boosts target to $130, upgrades to Strong Buy

STA Research
by: STA Research
Coinbase Global Inc.

STA Research upgraded Coinbase’s stock to a Strong Buy rating from Hold, and boosted the target to $130 from $65 per share.

Based on the Coinbase stock forecast from 19 analysts, the average analyst Coinbase stock price target is USD 175.68 over the next 12 months. Coinbase Global Inc’s average analyst rating is Buy. Stock Target Advisor’s own Coinbase stock forecast is Slightly Bullish, which is based on 9 positive signals and 4 negative signals. At the last closing, Coinbase stock price was USD 80.81Coinbase stock price has changed by +21.98% over the past week, +31.77% over the past month and -66.93% over the last year.

Coinbase Global, Inc. provides financial infrastructure and technology for the cryptoeconomy in the United States and internationally. The company offers the primary financial account in the cryptoeconomy 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 stock price 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 Coinbase stock price prediction to make sure there is no specific reason.

Superior return on equity:

Coinbase stock price has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

Coinbase stock price has shown 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 stock price has shown better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

Coinbase stock price prediction has shown positive total cash flow in the most recent four quarters.

Positive free cash flow:

Coinbase stock forecast has shown positive total free cash flow in the most recent four quarters.

Superior Earnings Growth:

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

Superior Revenue Growth:

Coinbase stock price prediction has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

Poor risk adjusted returns:

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns:

The average income yield over the past 5 years for Coin stock forecast has been low compared to its peers. However, it is not a problem if you are not looking for income.

Highly leveraged:

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

Overpriced on free cash flow basis:

Coinbase stock price 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 to buy.

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