Coinbase (NASDAQ:COIN) stock is down about 1% today after the company issued lackluster forward guidance.
The company reported fourth-quarter earnings that beat analyst estimates across the board, with earnings per share (EPS) coming in at $3.32 versus $1.85 that Wall Street had expected. Revenue came in at $2.5 billion, beating analyst estimates for $1.94 billion.
However, despite the strong earnings beat, Coinbase stock is slumping after it forecast that monthly transacting users (MTUs) and total trading volume during the current first quarter would be lower than in Q4. Why? The company attributed the change to a 20% drop in the crypto market capitalization, among other things.
Coinbase also said it expects subscriptions and services revenue to be lower in the current quarter because of falling cryptocurrency prices. Management has previously warned shareholders that they should consider COIN stock a long-term investment because of volatility.
The earnings results, forward guidance, and today’s slide begs the question: Is COIN stock a buy? Here are three analyst predictions for where the company’s share price could be headed.
Analyst Price Predictions on COIN Stock
- Rosenblatt Securities maintains a “buy” rating on COIN stock with a $262 price target, which would be 46% higher than where the stock ended trading yesterday.
- Needham & Company also has a “buy” rating on Coinbase shares with a price target of $360, which implies 100% upside .
- Mizuho Securities has a “hold” rating on COIN stock and a price target of $220 a share, which is 23% above where the stock currently trades.
What’s Next for Coinbase
The price targets on COIN stock are all over the place, reflecting just how volatile and unpredictable its shares can be. Among 19 professional analysts who cover Coinbase, the median price target is currently $300, which would be 75% higher than current levels. The consensus rating on the stock is “buy.”
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.