Argus initiates Coinbase stock with Buy rating, $400 price target

Investing.com - Argus initiated coverage on Coinbase Global Inc. (NASDAQ:COIN) with a Buy rating and a $400 price target on Monday. The stock, currently trading at $394.44, is hovering near its 52-week high of $395.50, having delivered impressive returns of 77.53% over the past year.

The research firm cited Coinbase’s position as the leading cryptocurrency trading platform, offering services including custodial solutions, analytics tools, and risk management tools. Argus highlighted the company’s "impressive record of growth" - evidenced by its 76.45% revenue growth and industry-leading 85.25% gross profit margin - and suggested the recent passage of the Genius Act would provide "an impetus to growth moving forward."

Argus noted that Coinbase was included in the S&P 500 on May 19, 2025, replacing Discover Financial Services (NYSE:DFS) following its merger with Capital One (NYSE:COF). This made Coinbase the first crypto-native member of the index.

The firm acknowledged valuation risks, stating that COIN shares are "off the charts" on fundamentals and more expensive than other exchanges including ICE, NDAQ, CME, and CBOE in their coverage.

Despite the premium valuation, Argus believes Coinbase’s higher margins compared to its peer group and its "promising" growth runway justify the premium "at least in the near term and during a bull market."

In other recent news, Coinbase Global Inc. has made significant strides with its acquisition of the leadership team from Opyn, a blockchain-based derivatives protocol. This move aligns with Coinbase’s strategy to enhance its on-chain operations, incorporating Opyn’s expertise in decentralized finance. Additionally, Coinbase has partnered with Perplexity AI to provide real-time crypto data, allowing traders to make more informed decisions through Perplexity’s Comet browser. In the investment realm, Citizens JMP has adjusted its price target for Coinbase to $400 from $475, maintaining a Market Outperform rating, indicating a long-term positive outlook despite the revised valuation.

Raymond (NSE:RYMD) James has reiterated its Market Perform rating on Coinbase, expressing concerns over the sustainability of its revenue amid a fluctuating cryptocurrency market. Meanwhile, Sequans Communications has chosen Coinbase as its custodian for a new bitcoin treasury strategy, further solidifying Coinbase’s role in the digital asset space. These developments highlight Coinbase’s ongoing efforts to integrate more deeply into blockchain technology and the broader financial ecosystem.

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