Coinbase Stock Rated a Buy With Potential for Over 60% Growth Amid New Regulatory Landscape

Bernstein has begun coverage of Coinbase, setting a price target of $310 and an outperform rating based on favorable regulatory conditions.

What to know:

Bernstein has rated Coinbase with an outperform rating and a price target of $310.
The firm notes that the crypto exchange stands to gain from the improving regulatory environment under the Trump administration.
The report states that rising dominance of the U.S. crypto market will help mitigate competitive challenges faced by Coinbase.

The crypto industry is expected to integrate into the mainstream financial sector as the regulatory framework evolves positively, and Coinbase (COIN) is poised to capitalize on these advantages, according to Bernstein.

Details include:

Approximately 41% of Wall Street analysts currently recommend buying the stock.
In initial trading, shares dropped by 2% to $185.20.

Bernstein’s report highlights:

Increased clarity in regulations may spark greater competition for Coinbase from various fintech companies, banks, and brokers.
Nonetheless, analysts predict that a robust bull market and enhancing U.S. onshore market presence will surpass any declines in market share or profit margins.

Additionally, regulatory reforms proposed by President Trump could significantly benefit digital asset markets, aligning with his goal to establish the U.S. as the “crypto capital of the world.”

New initiatives by the SEC, like the formation of a crypto task force led by Commissioner Hester Peirce, aim to create updated industry guidelines.

With a diversified portfolio, Coinbase has been establishing a strong foothold in U.S. dollar stablecoins and crypto yield services, such as staking.

Bernstein estimates that non-trading revenue for Coinbase will grow at a 31% CAGR between 2024 and 2026, providing stability against the cyclical nature of trading revenues.

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