- Analysts at the bank upgraded the stock from “neutral” to “overweight” and set a new price target of $404 per share.
- According to JPMorgan, Coinbase is looking at ways to further capitalize on the platform’s success.
After an upgrade of JPMorgan Chasethat disclosed additional revenue generation related to Coinbase’s core network and USDC payment method, Coinbase Global Inc. ( COIN ) shares rose on Friday.
Analysts at the bank upgraded the stock from “neutral” to “overweight” and set a new price target of $404 per share, representing a 15% increase from where the stock is already trading. According to JPMorgan, Coinbase is looking at ways to further capitalize on the platform’s success and is “leaning toward” its Base layer-2 blockchain.
The bank’s estimates put the potential market opportunity for a Base token launch at $12-34 billion, with Coinbase’s retained share of $4-12 billion. According to analysts, the Base community, validators and developers would probably be prioritized when tokens were distributed.
All Eyes on Q3 Results Report
Changes to Coinbase USDC the rewards program was also mentioned as having the potential to increase margins in the report. Given current USDC yields and interest rates, JPMorgan estimates that Coinbase could earn an additional $374 million per year if it were to provide interest incentives to Coinbase One members at the expense of most customers.
As a result of the upgrade, COIN stock rose about 9% on Friday, reaching $353. Up 42% so far this year, Coinbase’s market cap is currently over $90.6 billion.
Third quarter results will be announced by Coinbase on October 30. Earnings per share of $1.06 are expected, 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 too Coin basewhich had a disappointing second quarter in terms of profitability but achieved a number of operational goals, such as increasing stablecoin balance and stablecoin-related revenue. With an expected contribution of US$665-745 million in the third quarter, the subscription and services segment has received increasing attention from the company.
Featured Crypto News Today:
Ferrari Enters Crypto Market With Exclusive Launch Of ‘Token Ferrari 499P’
