- Analysts at the bank upgraded the stock from “Neutral” to “Overweight” and set a new price objective of $404 per share.
- According to JPMorgan, Coinbase is looking at methods to further capitalize on the platform’s success.
Following an upgrade by JPMorgan Chase, which revealed additional monetization prospects related to Coinbase’s Base network and USDC payment approach, Coinbase Global Inc. (COIN) shares surged on Friday.
Analysts at the bank upgraded the stock from “Neutral” to “Overweight” and set a new price objective of $404 per share, representing a 15% increase from where the stock is already trading. According to JPMorgan, Coinbase is looking at methods to further capitalize on the platform’s success and is “leaning into” its Base layer-2 blockchain.
The bank’s estimations put the potential market opportunity for a Base token launch at $12–$34 billion, with Coinbase’s retained share being at $4–$12 billion. According to analysts, the Base community, validators, and developers would probably be given priority when the tokens were distributed.
All Eyes on Q3 Earnings Report
Alterations to Coinbase’s USDC rewards program were also mentioned as having the potential to increase margins in the report. Considering the present USDC yields and interest rates, JPMorgan estimates that Coinbase could make an additional $374 million per year if it were to give interest incentives to Coinbase One members at the expense of most customers.
As a result of the upgrade, COIN stock jumped about 9% on Friday, reaching $353. With a 42% increase so far this year, Coinbase’s market valuation is currently at over $90.6 billion.
The third quarter earnings will be announced by Coinbase on October 30. Earnings per share of $1.06 are anticipated, up 71% year over year, on revenue of $1.74 billion, up 44.1% from the same quarter last year, according to Zacks Investment Research.
The next report is a mixed bag for Coinbase, which had a disappointing second quarter in terms of profitability but did reach a number of operational goals, such as increasing stablecoin balances and stablecoin-related revenue. With an expected contribution of $665–745 million in the third quarter, the subscription and services segment has been receiving increasing attention from the corporation.
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