Benchmark reiterates Buy rating on Coinbase stock after strong Q3 results

Investing.com - Benchmark has reiterated a Buy rating with a $421.00 price target on Coinbase Global Inc. (NASDAQ:COIN) following the cryptocurrency exchange’s third-quarter earnings report. The target represents about 17% upside from the current price of $359.83. InvestingPro data shows Coinbase is trading at a P/E ratio of 33.9, which appears high but relatively low compared to its near-term earnings growth potential.

Coinbase reported transaction revenues more than doubled year-over-year in the third quarter of 2025, while subscription and services revenue exceeded the high end of management’s guidance. The company delivered better-than-expected results on both revenue and earnings. This performance continues the strong trend shown in InvestingPro data, with overall revenue growth of 49.2% over the last twelve months and the company remaining profitable with diluted EPS of $10.37.

The strong performance was driven by a rebound in trading volumes compared to the previous quarter, accelerating blockchain adoption, and significant growth in revenues from stablecoins and derivatives, according to Benchmark. This business momentum has translated into impressive stock performance, with InvestingPro showing an 83.3% price return over the past year and a 61.9% gain in the last six months.

During the earnings call, Coinbase management maintained its full-year 2025 guidance while emphasizing that the company’s business model is positioned to scale alongside broader institutional adoption of digital assets.

Benchmark noted that Coinbase regained momentum in the third quarter after experiencing a slowdown in the previous quarter, with the company’s operating and financial leverage becoming more apparent in the improved cryptocurrency market environment.

In other recent news, Coinbase Global Inc. reported its third-quarter 2025 earnings per share of $1.44, surpassing consensus estimates of $1.26, with adjusted EBITDA exceeding expectations by $97 million. Goldman Sachs noted Coinbase’s third-quarter earnings per share of $1.50, outperforming its own estimate of $1.20 and the consensus expectation of $0.99. Excluding one-time items, the core earnings per share matched Goldman Sachs’ estimate of $1.93 and surpassed the consensus of $1.84. BTIG has raised its price target for Coinbase to $420, citing the expansion of tradable spot assets through DEX integrations and enhancements in global options. Meanwhile, Jefferies and Goldman Sachs have adjusted their price targets to $367 and $368, respectively, while maintaining their Hold and Neutral ratings. Jefferies attributed its adjustment to a higher spending outlook, while Goldman Sachs maintained its Neutral stance. These updates reflect a mixed analyst sentiment on Coinbase’s financial outlook and strategic expansions.

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