What to know:

• Coinbase is experiencing significant momentum, with upcoming quarterly results expected to exceed estimates.
• JMP has raised its price target for Coinbase from $400 to $475 and maintains its market outperform rating on the stock.
• The company is poised for substantial growth, potentially expanding to multiples of its current size over the next five years.

Coinbase (COIN) ended 2024 with strong business momentum as sentiment in the digital asset industry improved, according to JMP in a research report released after the crypto exchange reported its fourth quarter results.

JMP is optimistic about Coinbase’s potential, asserting, “You haven’t seen anything yet”. If the current transaction rate holds, the revenues for the first quarter of 2025 could surpass Street consensus estimates by nearly 30%.

Analysts point out a ‘seismic shift’ within the industry, further emphasizing that Coinbase’s positive momentum is not fully reflective of upcoming changes in the crypto landscape. They project enormous growth and believe that the regulatory environment is becoming supportive of the industry’s next chapter.