Analyst Mark Palmer from Benchmark has initiated coverage of Coinbase (COIN) with a buy rating and a price target of $252, highlighting the company’s revenue diversity. Palmer noted that Coinbase’s partnership with Circle will help the company generate interest income from USDC reserves, making it well-positioned to benefit from stablecoin legislation. He emphasized that cryptocurrency market volatility could be mitigated by the increasing share of recurring revenue from their subscription and services segment, which saw a 15% increase in Q4 2024. This revenue stream, which includes blockchain rewards and custodial fees, accounted for 29% of total revenue in that quarter. Palmer projects a compound annual growth rate of around 36% for non-trading revenue offerings through 2026. With shares trading around $197, the outlook remains optimistic as COIN prepares to report its Q1 results on May 8.

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