In brief
- Coinbase is “misunderstood,” Bernstein analysts said in a note, raising their price target nearly 65% from their previous forecast.
- The analysts maintained their outperform rating.
- Coinbase, which was recently trading for $349, will reach $510 by 2027, the analysts said.
Investment firm Bernstein called Coinbase a “misunderstood” company in a Wednesday note and upgraded its price target by 65% from a forecast just three months ago.
Analysts wrote that the recent Senate approval of the stablecoin-related GENIUS Act, the company’s wide-ranging initiatives and dominant position should boost the price to $510 by 2027.
“The bear thesis on Coinbase has not played out,” the note authored by Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia read. “Coinbase’s market share has been persistent despite new competition.”
The authors added: “As the regulatory headwinds for the crypto industry have receded, Coinbase has emerged as the premier crypto financial platform, consolidating market share in the U.S.”
Bernstein, which maintained its outperform rating, had assigned COIN a $310 price target in March, citing a favorable regulatory environment for crypto under the Trump administration.
Coinbase’s stock (NASDAQ: COIN) was recently trading for $349, after a 1% jump over the past day. Year-to-date, COIN is up by 36%.
Washington lawmakers last week approved a bill establishing a framework for issuing and trading stablecoins, cryptocurrencies usually pegged to the U.S. dollar. Coinbase is heavily involved in the stablecoin world and is helping merchants roll out payments with the USD Coin cryptocurrency.
The San Francisco, California-based company went public in 2021. Users can buy, sell, and bet on the future price of digital coins and tokens on its platform.
The company also handles Bitcoin custody for a number of top asset managers and has contracts with the U.S. government.
Bernstein analysts added that Coinbase’s May deal to buy derivatives exchange Deribit and the fact that its network, Base, was being used by big players—including JP Morgan—would help the company’s stock further.
Coinbase in May started trading on the S&P 500 index and unlike other crypto exchanges, has not faced huge hacks or bankruptcy.
“In the world of failed crypto exchanges driven by exchange hacks/frauds (Mt Gox failure in 2014, and FTX failure as recently in 2022), COIN has emerged as the crypto safe haven, led by its compliance-first approach and its track record of no loss of user funds,” Bernstein analysts added.
Edited by James Rubin
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