'Built to Last': Cowen Starts Coinbase at Outperform
Categories: Crypto News US
The US-based crypto exchange is seen as a “dominant player in the States with a burgeoning subscription & services platform we believe can grow at a +DD% CAGR for the foreseeable future”.“With 88% of TTM net revenues from transaction fees it charges retail users, we expect COIN to be primarily an exchange/retail brokerage-driven story over the next several years. We estimate COIN has a dominant ~46% share of total U.S. regulated centralized exchange spot volume as of 2021, up from 39% in 2020; increasing market share y/y despite concerns over rising competition. In our view, current industry structure suggests that risk of n-t fee compression is low given these platforms also compete on security/trust of platform access to assets, ease of use, customer support, and alt. products (staking, NFTs, defi, etc.),” Glagola told clients in a note.The price target is based on the 12x multiple as the analyst opted to take “a more conservative view on macroeconomic uncertainty and crypto volatility over the next 12 months.”