Analysts Are Betting On Coinbase Global, Inc. (NASDAQ:COIN) With A Big Upgrade This Week

Coinbase Global, Inc. (NASDAQ:COIN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After this upgrade, Coinbase Global's 19 analysts are now forecasting revenues of US$4.3b in 2024. This would be a huge 48% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$3.3b in 2024. The consensus has definitely become more optimistic, showing a considerable lift to revenue forecasts.

View our latest analysis for Coinbase Global

The consensus price target rose 28% to US$166, with the analysts clearly more optimistic about Coinbase Global's prospects following this update.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Coinbase Global's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 48% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 11% a year over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.6% annually. So it looks like Coinbase Global is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. The analysts also expect revenues to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Coinbase Global.

Analysts are clearly in love with Coinbase Global at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 2 other risks we've identified .

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.