Coinbase (COIN) closed out 2024 with impressive business momentum, driven by an improving sentiment surrounding the broader digital asset industry, according to a research report from broker JMP released on Thursday following the crypto exchange’s fourth-quarter results.
JMP raised its price target for Coinbase to $475 from $400, while maintaining its market outperform rating on the stock. Despite this positive outlook, the shares dropped 1.3% to $294.30 in early trading, after seeing an 8.4% increase on Thursday.
JMP analysts, led by Devin Ryan, believe Wall Street may be undervaluing the company’s potential.
“You ain’t seen nothing yet,” the report states, predicting that if the current transaction pace continues, Coinbase’s Q1 2025 revenues could exceed Street estimates by nearly 30%.
The report highlighted a “seismic shift” occurring within the industry and emphasized that Coinbase’s strong momentum does not fully account for the transformative changes that are still to come.
Looking ahead, JMP expects massive growth for Coinbase, forecasting the company could become multiples of its current size within the next five years.
“The regulatory and legislative environment is now aligning to support the next phase of crypto,” the report concluded.
