Crypto exchange Coinbases blowout Q1 earnings results led investment bank DA Davidson to up its price target for the companys soon-to-be-direct-listed shares by 125%.
Rating COIN a buy, Davidson raised the exchanges share price target from $195 to $440, which is a 20x multiple of its expected 2021 revenue. The analysts said the companys Q1 performance was proof the crypto exchange giant could generate healthy margins despite the uncertainty of the bitcoin markets.
Davidson estimates Coinbase will have 205.6 million shares outstanding. While that share count may change, it does imply a $90 billion market cap, said Gil Luria, head of institutional research at Davidson.
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Coinbases $1.8 billion in reported revenue beat Davidsons estimate of $614 million. Trading volumes were also higher than Davidson expected and expenses were lower than predicted.