Citing 币界网, Compass Point analysts downgraded Coinbase's price target from $266 to $230 in a report, citing limited short-term revenue potential from new product verticals. The analysts highlighted tokenized stocks and prediction markets as potential long-term revenue drivers, estimating $230 million and $210 million in income respectively, though they noted these could take years to materialize. Coinbase's stock fell over 5% to $252 on Monday, underperforming Robinhood, which has seen a 215% surge this year. The report also compared Coinbase's potential stock trading model to Robinhood's, suggesting it may rely on rebates from market makers rather than charging fees.
Compass Point Lowers Coinbase Price Target to $230 Amid Tokenized Stocks and Prediction Market Analysis
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Summary
Compass Point cut its price prediction for Coinbase to $230 from $266, citing slow revenue growth in new areas like tokenized stocks and prediction markets. The firm sees long-term potential in these products, projecting $230 million and $210 million in income, but warns returns may take years. Coinbase’s stock dipped over 5% to $252, lagging Robinhood, which has surged 215% this year. Analysts also noted Coinbase may rely on rebates from market makers, similar to altcoins to watch in the trading space.
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