Coinbase's Weak Q2 Is a Blip, Not a Breakdown, Says Benchmark
Main Idea
Benchmark analyst Mark Palmer views Coinbase's weak Q2 performance as a temporary setback rather than a long-term issue, reiterating a buy rating and $421 price target, citing several growth catalysts.
Key Points
1. Benchmark analyst Mark Palmer reiterated his buy rating and $421 price target for Coinbase, despite its weak Q2 results.
2. Coinbase shares rose 1.8% in early trading after a 16.7% drop following the Q2 results.
3. Five catalysts support Benchmark's bullish thesis: revenue-sharing agreement with Circle on USDC reserves, institutional offerings, development of a crypto 'super app', integration of decentralized exchanges, and a 44% jump in July transaction revenue.
4. Benchmark concludes that the Q2 miss is short-term noise, with long-term growth supported by regulatory tailwinds and increasing institutional demand.
Description
Coinbase’s (COIN) softer-than-expected second quarter results triggered a sharp Friday sell-off, but Wall Street broker Benchmark says the drop is a buying opportunity, not a red flag. Analyst Mark Palmer reiterated his buy rating and $421 price target. He argued that the exchange's long-term investment case remains intact as the company continues to build foundational crypto infrastructure. The shares are 1.8% higher in early trading Monday, after having closed 16.7% lower on Friday. Benchmark ...
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