Global equity research firm Bernstein has upgraded its price target for Coinbase (COIN) from $310 to $510, forecasting a potential 50% rally in the cryptocurrency exchange's shares. Coinbase, the only crypto company included in the S&P 500 index, recently saw its stock rise by nearly 2% in one day, following a 32% gain over the past month.
Key catalysts driving this bullish outlook include:
- Legislative momentum in the U.S. Congress supporting the crypto industry, including recent stablecoin legislation which Coinbase stands to benefit from.
- Its sizeable stablecoin business, notably being the largest stablecoin exchange among competitors.
- A partnership with Shopify enabling merchants to accept payments in the stablecoin USDC.
- The $3 billion acquisition of derivatives platform Deribit, marking the largest crypto acquisition ever and boosting Coinbase's position in the derivatives market.
- Custodian role for eight of 11 Bitcoin ETF asset managers, enhancing institutional trust.
Bernstein analyst Gautam Chhugani described Coinbase as "the most misunderstood company in crypto," highlighting its key strategic role and expansive ecosystem involvement with major assets like BTC, ETH, and USDC. The firm sees the exchange uniquely positioned for growth amid increasing institutional interest and ongoing regulatory developments in the U.S.
Historically, similar bullish re-ratings and regulatory advances have coincided with Coinbase’s stock price surges and positive momentum in exchange-related assets. The upgraded target is expected to spur trading activity in COIN shares while signaling broader confidence in crypto adoption trends tied to Coinbase’s comprehensive service offerings.
