Global investment bank Goldman Sachs has issued contrasting ratings for two major cryptocurrency platforms, upgrading Coinbase Global from Neutral to Buy while simultaneously downgrading eToro from Buy to Neutral. The bank raised Coinbase's 12-month price target to $303 per share from $294, implying approximately 28% upside, while lowering eToro's target from $48 to $39.
The upgrade reflects Goldman Sachs' growing confidence that Coinbase has transitioned from a cyclical, trading-dependent business to one with more durable, structural growth. Analyst James Yaro highlighted the company's expanding exposure across derivatives, crypto infrastructure, and new product verticals as key drivers. A major factor is Coinbase's subscription and services segment, which includes custody, stablecoins like USDC, and staking offerings. This segment has grown from under 5% of revenue in 2020 to nearly 40% by 2025 estimates, significantly improving revenue stability and reducing earnings volatility.
Goldman Sachs projects Coinbase's revenue will grow at an average annual rate of 12% through 2027, significantly outpacing the competitor average of 8%. The bank cited diversified revenue streams beyond transaction fees, accelerating institutional adoption in regulated markets, international expansion, and product innovation in staking and custody services as contributing factors. Following the report, Coinbase shares traded more than 7% higher in early Monday trading.
Conversely, the eToro downgrade was driven by concerns over intensifying competition in the platform's core social trading markets, which is expected to drive up customer acquisition costs and pressure margins. Goldman Sachs noted eToro's vulnerability to regulatory changes in key European markets and challenges in differentiating against newer competitors.
The bank also highlighted Coinbase's strategic milestones, including its recent U.S. stock trading launch in mid-December 2025, which supports management's ambition to evolve into an "everything exchange" offering crypto, traditional equities, and tokenized financial products. Goldman described Coinbase as a "best-in-class play" on crypto infrastructure growth, citing its scale, regulatory positioning, and brand strength.
