Coinbase (COIN) Stock: Citi Partnership Sparks Price Target Hike

TLDR

• Citigroup has partnered with Coinbase to let its corporate clients accept stablecoin payments from customers.
• Coinbase will supply the blockchain rails, while Citi handles settlement as the bank of record.
• Robert W. Baird raised its Coinbase price target from $130 to $205, implying about 5% upside.
• Coinbase’s Q2 results missed expectations, posting a $1.36 per share loss versus a forecast $0.44 loss.
• Analysts remain split, with a consensus “Hold” rating and an average price target of $222.47.

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Coinbase (COIN) stock opened at $195.11 on Monday, sitting between its 50-day moving average of $170.99 and its 52-week high of $402.16. The stock move comes as the company lands a new partnership with Citigroup.

Coinbase Global, Inc., COIN

Citi has tapped Coinbase to help the bank’s large corporate clients accept stablecoin payments from customers. It’s the latest step in linking traditional banking with the crypto ecosystem.

Coinbase will provide the stablecoin payment rails and blockchain technology. Citi will settle the funds and act as the bank of record.

Citi’s institutional clients will be able to accept stablecoin payments at checkout through Citi’s merchant-processing services. The stablecoins will be held at Coinbase and earn an interest-like reward, currently 3.75% annually.

Shahmir Khaliq, Citi’s head of services, described the deal as part of connecting digital assets to the traditional dollar-based economy. He called it part of “completing that jigsaw puzzle.”

Citi Expands Blockchain Services

Citi is also expanding its token services, which lets multinational clients move money across the bank’s own blockchain network around the clock. The service is now live in Japan and the UAE, bringing the total to seven jurisdictions.

Citi is part of a group of nearly two dozen firms planning to launch a joint stablecoin. The bank also runs a venture letting wealthy clients trade private company shares via blockchain.

The Coinbase deal arrives after the Clarity Act, a crypto-focused bill, failed to advance in the Senate. Khaliq said Citi isn’t slowed by the setback, noting the bank will keep working within its current regulatory limits.

Brett Tejpaul, head of Coinbase Institutional, said the partnership aims to let consumers and businesses move between dollars and stablecoins without leaving the traditional banking system.

Analyst Views Split on COIN

Robert W. Baird raised its price target on Coinbase from $130 to $205 this week, while keeping a “neutral” rating. That target points to roughly 5% upside from Monday’s opening price.

Other analysts have moved in different directions recently. Oppenheimer trimmed its target from $209 to $193 while keeping an “outperform” rating. William Blair reaffirmed its “outperform” call, while Barclays cut its target to $95 with an “underweight” rating.

Piper Sandler lowered its target to $146 with a “neutral” rating. Zacks Research upgraded the stock from “strong sell” to “hold.”

In total, 19 analysts rate COIN a Buy, 12 rate it a Hold, and three rate it a Sell. MarketBeat lists a consensus “Hold” rating with an average price target of $222.47.

Coinbase’s last quarterly report, released July 30th, showed an adjusted loss of $1.36 per share. That missed the expected loss of $0.44 per share by a wide margin.

Revenue came in at $1.22 billion, below the $1.29 billion analysts had forecast. Revenue was down 18.5% from the same quarter last year.

Insider selling has also been active. CFO Alesia Haas sold 39,030 shares on September 21st at an average price of $205.24, worth just over $8 million.

Director Marc Andreessen sold 6,838 shares the same day at an average of $205.05, a transaction worth about $1.4 million. Insiders have sold roughly $20.7 million in stock over the past three months.

Institutional investors currently hold 68.84% of Coinbase’s stock, with several funds increasing their positions in the second quarter.