Coinbase target price raised to $212, Cantor Fitzgerald maintains Overweight rating

Odaily News - Wall Street investment bank Cantor Fitzgerald has raised its Coinbase target price from $184 to $212 and maintained an "Overweight" rating. The firm stated that after Bitcoin recently reclaimed the $80,000 level, valuations across the crypto ecosystem have seen a recovery. As the leading U.S. compliant trading platform, Coinbase remains one of the core stocks for institutional capital seeking beta exposure to the crypto market. Sentiment in the crypto market has warmed recently, with Bitcoin rebounding from its recent lows, driving improvements in trading volumes, ETF inflows, and valuations of related stocks. Coinbase's share price has also recovered alongside crypto assets, with the market beginning to price in higher expectations for trading revenue, custody revenue, and subscription services revenue. Cantor Fitzgerald has incorporated Coinbase management's latest guidance for the third quarter into its model: subscription and services revenue is expected to be between $500 million and $580 million, transaction fees as a percentage of net revenue are expected to be in the mid-teens, and adjusted expenses are expected to be between $980 million and $1.08 billion. The firm believes that if Bitcoin maintains its strength, the trading activity and risk appetite in the crypto ecosystem will continue to support Coinbase's valuation.