“Coinbase is quickly shedding market share and seeing important take fee compression — we anticipate these tendencies to speed up as competitors intensifies (Robinhood, FTX & Binance probably the most harmful),” Bolu mentioned in a fiery be aware Wednesday morning. The analyst began protection of Coinbase with an Below-perform score. “Extra regarding is Coinbase lagging on nearly each crypto innovation (together with altcoins, derivatives, NFTs). If the development continues, Coinbase may quickly lose relevance, very similar to Netscape did within the early web period.”
Bolu initiated protection of Coinbase with a $160 value goal, or potential draw back threat of $160 from present ranges.
Coinbase shares fell practically 1% to $248.30 in pre-market buying and selling Wednesday. Shares of Coinbase are down about 24% over the past six months regardless of the rally again in bitcoin and different crypto costs in latest months. The inventory stays beneath its closing value ($328.28) on its first day of buying and selling on April 14 as buyers stay involved about rising competitors from Robinhood and different crypto platforms.
Fixed worries about payment compression additionally proceed to plague the inventory, consultants say.
Bolu had extra upbeat phrases for Robinhood, initiating the inventory with an Out-perform score and $55 value goal (38% upside from present ranges).
“After important person development in 2020/21, we anticipate future income development to be primarily pushed by elevated monetization (most notably in crypto and lending). This might triple Robinhood’s common income per person over the subsequent 3-5 years. Longer-term, disruptive actions on deposit pricing (if charges rise) and worldwide enlargement may energy the subsequent leg of account development,” Bolu mentioned.