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Coinbase Will Be a Long-Term Crypto Winner
Coinbase is positioned to thrive in the evolving crypto market, according to Monis, Crespi & Hardt, which initiated coverage with a buy rating and a $245 price target in a note on Monday.
Despite near-term volatility, the firm views Coinbase (NASDAQ:COIN) as a major player with a strong foundation for long-term success.
They also emphasized Coinbase’s important role in the emerging multi-chain future, suggesting the company is well-positioned to benefit from the decentralized finance protocols that are gaining momentum.
The note says Coinbase’s efforts to address scalability issues through its Ethereum Improvement Plans (EIPs) and its active push to move the crypto industry into the mainstream.
Monis, Crespi, and Hardt also highlighted Coinbase’s “participation in SDC” and the recent appointment of Jesse Pollack, the creator of “Bez,” to lead Coinbase Wallet as signs of strategic progress in transaction processing.
The analysts said Coinbase’s large user base — 110 million verified users and 8.2 million monthly transacting users — offers compelling economics.
According to the firm, the user base, coupled with additional monthly user conversions and expansion into new geographies, will maintain attractive unit economics through crypto boom and bust cycles.
Additionally, they believe subscription services like Coinbase One are expected to drive increased average revenue per user (ARPU).
While Coinbase faces regulatory challenges, including an ongoing lawsuit against the U.S. Securities and Exchange Commission, Monis, Crespi, and Hardt believe the legal uncertainties present an attractive buying opportunity.
Analysts concluded that Coinbase’s focus on safety, technology, and regulatory compliance makes it particularly attractive to both institutional and retail users, providing stability in an uncertain market. The $245 price target equates to 23x EV/EBITDA on projected 2025 earnings of $2.7 billion.
