There are increasing signs of Coinbase Global Inc COIN diversifying its revenues beyond retail cryptocurrency trading, a trend that could accelerate in 2022 and beyond, according to BofA Securities.
The Coinbase Global Analyst: Jason Kupferberg upgraded the rating for Coinbase Global from Neutral to Buy, while keeping the price target unchanged at $340.
The Coinbase Global Thesis: Revenues from the company’s subscription and services (S&S) segment comprised 12% of total net revenues in the third quarter of 2021, up from 4% in 2020, and is expected to grow to 16% in 2023, Kupferberg said in the upgrade note.
“In our view, scaling of these non-trading revenue streams could also catalyze increased interest in the stock among institutional investors,” the analyst wrote.
“While uncertainty around regulation remains an ongoing potential risk, we continue to believe that COIN’s technology/ innovation and brand are positive differentiators as more consumers and institutions engage with various parts of the crypto/digital asset ecosystem,” he added.
COIN Price Action: Shares of Coinbase Global had declined by 2.01% to $229.53 at the time of publication Thursday.
Photo: Courtesy Coinbase
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