Mizuho analyst Dan Dolev raised the firm’s price target on Coinbase to $145 from $84 and keeps an Underperform rating on the shares. The analyst says strong spot volumes post the bitcoin exchange traded fund launch, especially in alternative coins, could drive nearly 40% upside to Q1 consensus revenue, “as high margin retail investors are drawn into a rising crypto price environment.” The firm raised estimates amid a favorable near-term setup, but its long-term fundamental concerns remain. These include potential downward pressure on Coinbase’s retail fee rates and a heavy reliance on lower quality and cyclical revenue streams like alt coins, staking, and interest income, contends Mizuho.
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