Analysts expect Coinbase revenue growth above Wall Street consensus forecast

Analysts expect Coinbase revenue growth above Wall Street consensus forecast

Nasdaq-listed bitcoin exchange Coinbase will post third-quarter trading volume and revenue growth of 18% and 11% respectively. This was the view presented by analysts at Oppenheimer, CoinDesk writes.

"Against the backdrop of volatile events, trading volume increased significantly in late August-September," the experts explained.

Oppenheimer pointed out that Coinbase shares were down 12.2% in September versus 4.8% for the S&P 500 index.

They attributed the weakness to increased regulatory pressure, lower bitcoin prices, increased leverage, refusal to launch cryptocurrency accounts following SEC claims and risks associated with the Evergrande situation.

Oppenheimer analysts have a $444 price target on Coinbase stock, with a "buy" recommendation. It implies a rise of 73.6% from the closing price of October 6 ($250.38).

As a reminder, the bitcoin exchange applied for registration as a futures intermediary in September.

Coinbase later announced the launch of a cryptocurrency payroll service.

In April, the platform's head Brian Armstrong allowed the share of non-currency business in the company's revenues to grow to 50%.

Earlier, CoinShares chief development officer Meltem Demirors predicted that the first cryptocurrency will reach $100,000 by the end of 2021.

Coinbase doesn't offer fee-free trading. However, its fees are low compared with even the best crypto exchanges that charge fees and commission.

Former SEC official leaves Coinbase four months after appointment

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