Bernstein Raises Coinbase Price Target to $510
Research firm Bernstein has raised its price target for Coinbase stock (COIN) to $510, up from $310. This decision is driven by higher earnings expectations, emerging growth opportunities, and revised valuation methods. Despite being misunderstood, Coinbase remains the sole crypto-native firm in the S&P 500, according to Bernstein analysts, led by Gautam Chhugani. The firm's diverse business lines, including leading U.S. crypto trading, Bitcoin ETF custody services, and Ethereum's Layer 2 development, are crucial factors. Coinbase is also set to benefit from impending U.S. legislation on stablecoins and crypto market structures, and has plans to expand globally following its acquisition of Deribit. Bernstein's updated model forecasts significantly higher revenue in the coming years, with a substantial portion from non-trading sources. By 2026, earnings per share are expected to climb to $17.92 and continue rising. Coinbase's stock price, which is already approaching an all-time high, suggests further potential gains.
FAQ
❓ Why did Bernstein increase the price target for Coinbase?
Bernstein raised the price target due to higher earnings forecasts, diversified operations, and potential benefits from U.S. crypto legislation.
❓ How is Coinbase expected to grow in the coming years?
Coinbase is projected to see growth in revenue from trading, derivatives, staking, and stablecoin-related activities.
❓ What makes Coinbase a unique player in the crypto market?
Coinbase is the only crypto-native firm in the S&P 500 and has diverse operations that include trading, custody services, and global market expansion.