The Coinbase (NASDAQ:COIN) price target was raised to $79 from $66 per share at Bank of America on Friday, with analysts maintaining an Underperform rating on the stock.
According to analysts on Friday, high volumes will likely drive a transaction revenue beat for the cryptocurrency exchange.
Analysts said the bank's crypto tracker, which leverages data from CoinGecko and tracks global transaction volumes across crypto exchanges, points to a COIN transaction volume beat in the fourth quarter after reaching multi-year lows in the third quarter.
"COIN gained a slight 70bps of market share in 4Q," wrote analysts. "Additionally, COIN should benefit from the continued impact of higher pricing (implemented early' 23), partially offset by a negative mix shift as the 'power user' returns with higher volumes."
Despite the volume positives, BofA continues to see risks in the company's shares, given crypto market unpredictability, the lack of revenue diversification, and lingering regulatory/legal issues.