Coinbase Shares Started At Hold By Jefferies

Coinbase (NASDAQ: COIN) jumped more than 15% Monday as cryptocurrencies rose on the back of the positive market sentiment, but Jefferies analyst Trevor Williams is not yet convinced, initiating coverage of the stock with a Hold rating.

The analyst, who also assigned a $35 price target on the stock, explained that while Coinbase's premium brand, scale, and healthy balance sheet should allow it to endure the industry-wide fallout from FTX's collapse, he still sees “a steep climb to Street estimates in FY25,” which he thinks sets a recovery in Bitcoin to a price around $25,000.

Despite the rise, Coinbase shares are down 83% in the last 12 months, trading around the $38.27 mark.

Elsewhere on Monday, Wells Fargo analyst Jeff Cantwell cut the firm's price target on Coinbase to $33 from $55, maintaining an Underweight rating on the shares. Cantwell believes 2023 will be more fundamentally challenging for his coverage compared to 2022.

The analyst expects a challenging market environment in the first half of 2023 but believes slowing inflation plus a Fed pivot will drive risk-on sentiment in the space by the second half of the year.

In addition, JMP Securities also lowered its price target on Coinbase yesterday, with analyst Devin Ryan moving it to $80 from $155. Ryan, who maintained an Outperform rating on the stock, explained that the crypto space has taken another massive step back over the last 14 months due to fundamental pressures and a crisis of confidence following notable bankruptcies and the FTX fraud. However, he is positive, stating that while contagion likely will not be completely understood for some time, the industry can still transform into a more fundamental and less speculative asset class.