Coinbase price target raised to $54 from $35 at Mizuho

Mizuho raised the firm’s price target on Coinbase to $54 from $35 and keeps an Underperform rating on the shares. The analyst says rising bitcoin prices and higher volatility have driven Coinbase’s volumes up 90% versus Q3 levels. This implies the company’s Q4 revenue will be 25%-30% above consensus, the analyst tells investors in a research note. However, the firm says elevated volatility tends to also lure “advanced” traders back into the market, which can weigh on blended retail take rates. The Q4 revenue beat should be well-known, but a negative surprise on take rates is unlikely priced into the stock, contends Mizuho. The firm cites better than expected volume trends and a higher market multiple for the target increase.