Compass Point Raises Coinbase Price Target as Bitcoin Reaches New Cycle Milestone

Compass Point upgraded its rating for Coinbase Global (NASDAQ:COIN) to Neutral from Sell, citing expectations that Bitcoin is recovering from a cyclical bottom. The stock currently trades at $175.26 with a market cap of $46.24 billion.

The firm's price target was raised to $177 from $130, which reflects a 28-times multiple on Coinbase's mid-cycle EBITDA expectations. Analyst Ed Engel noted that Bitcoin historically trades in four-year cycles and the current cycle is tracking closely with historic norms.

Bitcoin broke through its short-term holder cost basis of $67,000, putting 65% of all holders in profit. Funding rates on perpetual exchanges have declined to low single digits, implying leveraged long positions are not overextended.