Coinbase Rallied For-No Good Reason

2022.08.04 23:22

Budrigannews.com – A Mizuho analyst kept a Neutral rating and $42 per share price target on Coinbase (NASDAQ:COIN) shares Thursday, stating the firm remains “cautious” on the stock.

Coinbase shares jumped over 20% Wednesday “significantly outperforming Bitcoin & peers,” said the analyst, adding that depressed volumes suggest the move was not merited.

“Indeed, at ~$1.8bn of crypto trading volume generated on the COIN platform, Wednesday’s volumes were barely above July’s ‘crypto winter’ levels, suggesting that the hype was premature,” wrote the analyst.

He added that the stock jumped for “no good reason” with volumes just “~5% above COIN’s average daily trading volume during the lowly July, and is nearly -50% below 1Q levels.”

“We assign a 7x multiple on COIN 2024E EBITDA (unchanged) to arrive at our $42 price target. Our multiple contemplates COIN’s risks from volatility and pricing pressure.”