Coinbase is a long-term crypto winner - Monness, Crespi, Hardt

Investing.com -- Coinbase Global is positioned to thrive in the evolving cryptocurrency market, according to Monness, Crespi, Hardt, which initiated coverage with a Buy rating and a $245 price target in a  note Monday. 

Despite near-term volatility, the firm views Coinbase (NASDAQ:COIN) as a key player with a strong foundation for long-term success.

“We see Coinbase as a long-term crypto Exchange/Custody/Services winner, owing to its first-mover advantage, superior technology, and leading compliance,” the analysts wrote. 

They emphasized the importance of Coinbase’s role in the emerging multi-chain future, suggesting the company is well-positioned to benefit as decentralized finance protocols gain traction.

The note says Coinbase's efforts to address scalability issues through Ethereum Improvement Plans (EIPs) and its active lobbying to move the crypto industry into the mainstream. 

Monness, Crespi, Hardt also highlighted Coinbase’s “participation in USDC” and the recent appointment of Jesse Pollak, creator of Base, to lead Coinbase Wallet as signs of strategic progress in transaction processing.

Coinbase’s large user base—110 million verified users and 8.2 million monthly transacting users—offers compelling economics, the analysts said.

The user base, combined with incremental conversion to monthly users and expansion into new geographies, will sustain attractive unit economics through crypto boom and bust cycles, according to the firm. 

Additionally, they believe subscription services like Coinbase One are expected to drive higher average revenue per user (ARPU).

While Coinbase faces regulatory challenges, including an ongoing SEC lawsuit, Monness, Crespi, Hardt believes the legal uncertainties present attractive buying opportunities. 

“This could be an overhang, but likely creates opportunities for compelling entry points around the timing of the case,” the note stated.

The analysts concluded that Coinbase’s focus on safety, technology, and compliance makes it particularly appealing to institutional and retail users alike, providing stability in an uncertain market. Their $245 price target reflects 23x EV/EBITDA on projected 2025 earnings of $2.7 billion.