Strong Near-Term Momentum Powers Coinbase, 2025 On Track for Success: JMP

Coinbase (COIN) finished 2024 with robust business momentum, driven by a positive shift in sentiment surrounding the digital asset market, according to a research report by broker JMP released Thursday after the crypto exchange’s fourth-quarter earnings.

JMP raised its price target for Coinbase to $475 from $400 while maintaining its market outperform rating. Despite this, Coinbase’s shares dropped 1.3% to $294.30 in early trading, following a strong 8.4% gain the day before.

The analysts at JMP, led by Devin Ryan, expressed belief that Wall Street is underestimating Coinbase’s future prospects.

“If transaction trends hold, first-quarter 2025 revenues could exceed current expectations by nearly 30%,” the report stated.

JMP highlighted the ongoing “seismic shift” in the cryptocurrency industry, noting that Coinbase’s current performance may not yet capture the full extent of the changes still to come.

With a supportive regulatory landscape ahead, JMP anticipates significant growth for Coinbase, projecting the company will multiply its size within the next five years.