Shares of Coinbase rose about 5% on Friday, a day after the crypto exchange reported weak financial results. The rebound came despite falling revenue and wider losses.
Coinbase said revenue declined as crypto prices dropped and trading activity slowed. Transaction revenue fell to $982 million in the fourth quarter, down from $1.5 billion a year earlier. Rising operating costs also weighed on profits.
Even so, top Wall Street analysts maintained their positive outlook on the stock. H.C. Wainwright kept its buy rating and set a price target of $350, saying the recent sell-off has made the stock attractive.
Other firms also stayed bullish while cutting their targets. Rosenblatt Securities lowered its target to $240, while Needham reduced its forecast to $230. Benchmark cut its target to $267. The average analyst target has now fallen to about $303.
Analysts also pointed to possible regulatory support from the proposed CLARITY Act. Supporters believe clearer crypto rules could benefit Coinbase over time, even though the bill remains stalled in Congress.
Coinbase reported large quarterly losses after writing down crypto holdings, including Bitcoin and Ethereum. The company said it is investing heavily to expand beyond trading and become a broader financial platform.
Coinbase shares climbed to around $147, above this year’s low of $140 but still far below the all-time high of $445. Some analysts warn the stock could face more pressure if crypto prices remain weak in the near term.
