FMP
May 17, 2024 2:41 PM - Davit Kirakosyan
Coinbase Global (NASDAQ:COIN) shares rose more than 2% pre-market today after BofA Securities analysts upgraded the company to Neutral from Underperform, raising their price target to $217 from $110.
The analysts noted that the current macro environment has positively impacted cryptocurrency market cap appreciation and trading volumes. They also highlighted Coinbase's disciplined approach to expenses and its ability to benefit from operating leverage following significant expense cuts in 2022, which should help maintain profitability.
Additionally, the increased diversification of Coinbase's revenue sources, which are less correlated with overall trading volumes, should reduce earnings volatility. However, the analysts also pointed out risks to this optimistic outlook, including Coinbase's continued dependence on transaction revenue for profitability, which accounted for 66% of total revenue in Q1/24, and the regulatory uncertainty associated with the ongoing SEC lawsuit.
Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...