By Senad Karaahmetovic

Cowen analyst Stephen Glagola began research coverage for Coinbase (NASDAQ) in March with an Outperform rating, and an $85.00 target share price.

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. COIN holds a 46% dominant share of U.S.-regulated centralized exchange spot volumes as of 2021. It was 39% in 2020. The market is growing y/y despite increasing competition. Our view is that the risk of n/t fees compression in this industry structure is very low because these platforms are competing on safety/trust of platform access and customer support. 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.”

Coinbase shares fell nearly 5% today, pre-open.