Crypto

Coinbase Likely To Dominate Third Quarter Trading, Bitcoin Volatility Income Estimates: Oppenheimer | Cryptocurrency

There is a potential 18% increase in trading volume and an 11% increase in total revenue estimates, an analyst wrote Tuesday night.

Coinbase (Nasdaq: COIN) is expected to exceed consensus estimates for transaction volume and total revenue for the third quarter due to recent bitcoin price volatility, according to Oppenheimer analyst Owen Lau.

  • Lau estimates there is a potential 18% increase in trading volume and an 11% increase in total revenue estimates, citing the “notable” improvement in the exchange’s trading volume during the second half of the year. Third trimester.

  • Coinbase shares had a “tough” September with the stock falling 12.2% to the S&P 500, a 4.8% drop, likely affected by increased regulatory oversight, the withdrawal of bitcoin, the company’s decision to pre-emptively terminate its loan product, its $ 2 billion in debt, and the macroeconomic risks associated with Evergrande in China.

  • “With all the news causing the volatility, trading volume improved dramatically in late August and September,” Lau wrote in a note.

  • Lau, who has a superior performance rating on stocks and a price target of $ 444, estimates that Coinbase has $ 6.5 billion in third-quarter cash that can potentially be used for new product development, mergers and acquisitions, diversification and increased investments on the balance sheet. in crypto.

  • Late last month, JMP Securities was also bullish on Coinbase stock, setting a price target of $ 300 and an outperformance rating to the stock market.

  • COIN shares are currently trading at around $ 250.

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