Strong momentum in development! Two investment banks have raised the target stock price of Coinbase (COIN.US)

On Tuesday, two investment banks raised the target stock price for Coinbase (COIN.US), with analysts pointing out the strong momentum of the platform's development and the possibility of clearer regulatory policies for cryptocurrencies. However, despite this, the price of Coinbase stock continued to fall, reflecting ongoing market uncertainty. Keefe, Bruyette & Woods analyst Kyle Voigt raised Coinbase's target stock price from $255 to $305 but maintained a "market perform" rating. Similarly, Canaccord analyst Joseph Vafi increased the target stock price from $280 to $400 and continued to rate it as a "buy." Despite analysts' optimism about Coinbase's future, the stock fell by 3.53% on Tuesday, closing at $264.63. This drop was consistent with the overall decline in the cryptocurrency market. According to CoinDesk data, Bitcoin fell by 1.9% in the past 24 hours, to $93,742, and Ethereum dropped by 3.2%. In the latest analysis report, Voigt of KBW stated that Coinbase offers investors a "unique opportunity to benefit from the growth of the crypto economy" in the long term, which is "undoubtedly scarce." He also emphasized that Coinbase's latest fourth-quarter financial report exceeded analysts' expectations in terms of profit and revenue, far surpassing Wall Street predictions. Additionally, management expressed optimism about changes in the regulatory environment during the earnings call. Voigt specifically mentioned that the Trump administration's "friendly attitude" towards cryptocurrencies and Congress' increasing support for the crypto industry could be beneficial for Coinbase. However, despite regulatory agencies appearing to be "shifting towards supporting cryptocurrencies," Coinbase still faces legal challenges and overall regulatory uncertainty. This has left many institutional investors hesitant to hold onto the stock. Canaccord's Vafi also holds a positive view on Coinbase's future prospects. He noted that Coinbase's total revenue in the fourth quarter of 2023 grew by 88% to reach $2.3 billion. His forecast models suggest that by the first quarter of 2025, the company's total revenue will reach $20 billion, representing a nearly 22% year-over-year growth. Transaction revenue is expected to grow by 15%, while total revenue from subscriptions and services (including staking income and stablecoin income) is forecasted to grow by 35%. Despite analysts raising Coinbase's target stock price, the stock's decline on Tuesday reflects ongoing cautious market sentiment. Investors still have doubts about the regulatory outlook for cryptocurrencies, especially regarding the direction of the Trump administration's policies on cryptocurrencies. Although Trump promised to promote Bitcoin as strategic reserve and facilitate the development of the crypto industry during his campaign, this issue has not been a policy priority since taking office. On January 23, the Trump administration signed an executive order requiring a report on cryptocurrency regulation and legislation to be submitted within 180 days, but there are still doubts in the market about whether this policy will actually be implemented. Coinbase is not the only cryptocurrency-related stock experiencing a decline. On Tuesday, the stock price of the world's largest Bitcoin holding company, MicroStrategy (MSTR.US), fell by 1.11% to close at $333.97. According to an 8-K filing submitted to the U.S. Securities and Exchange Commission, MicroStrategy did not purchase any Bitcoin between February 10 and February 17. Additionally, the company did not sell any Class A common stock through its "at-the-market" equity financing program during this period. This marks the second time this year that MicroStrategy has paused Bitcoin purchases, as they had also refrained from buying Bitcoin between January 27 and February 2. As of February 17, MicroStrategy holds approximately 478,740 Bitcoins, with a total purchase cost of $31.1 billion and an average purchase price of approximately $65,033 per Bitcoin.