Cantor Fitzgerald raises Coinbase stock price target to $500 on stablecoin growth

Investing.com - Cantor Fitzgerald has raised its price target on Coinbase Global Inc. (NASDAQ:COIN) to $500.00 from $292.00 while maintaining an Overweight rating on the cryptocurrency exchange operator’s stock. The stock, currently trading at $419.78 with a market capitalization of $107 billion, has surged 69% year-to-date, though InvestingPro data indicates it may be approaching overbought territory.

The significant price target increase reflects Cantor Fitzgerald’s revised earnings estimates, particularly for 2026, with projected earnings per share now at $10.76, up from the previous estimate of $8.36. The stock currently trades at a P/E ratio of 71x, significantly above market averages. For deeper insights into Coinbase’s valuation metrics and growth potential, InvestingPro offers comprehensive analysis through its Pro Research Report, available for over 1,400 US stocks.

The firm cited three key factors driving its more bullish outlook: expectations for less decline in transaction revenue than previously forecast, higher stablecoin revenue as companies develop their stablecoin strategies, and increased blockchain rewards revenue stemming from recent rallies in proof-of-stake digital assets.

Cantor Fitzgerald has also applied a higher price-to-earnings multiple of 46.5x compared to its previous 35x, reflecting what it describes as an ongoing perception shift from viewing Coinbase as merely a cyclical cryptocurrency trading platform to a "mission-critical infrastructure layer of crypto."

The firm noted that while Coinbase shares have begun to reflect the stablecoin opportunity, they do not yet account for the potential of Base, the company’s layer 2 blockchain, and highlighted Coinbase’s recent announcement of a comprehensive cryptocurrency "superapp" that will include payments, social features, chat, apps, and trading.

In other recent news, Coinbase Global Inc. has seen a series of analyst upgrades and regulatory developments that could impact its future performance. Cantor Fitzgerald raised its price target for Coinbase to $500, citing increased earnings projections due to a robust cryptocurrency market and the company’s strategic product updates. The firm noted that the recent cryptocurrency rally, particularly Bitcoin’s rise, is expected to boost trading volumes on Coinbase’s platform. Similarly, Rosenblatt increased its price target to $470, highlighting Coinbase’s inclusion in the S&P 500 and the positive political climate surrounding cryptocurrency. Meanwhile, Compass Point adjusted its price target to $330, acknowledging Coinbase’s efforts to integrate decentralized exchanges as a response to retail trading challenges.

Additionally, legislative progress has been made with the U.S. House of Representatives passing a bill to expand the Commodity Futures Trading Commission’s oversight of digital assets. President Donald Trump also signed a bill regulating stablecoins, which has been perceived as a victory for the cryptocurrency industry. These regulatory changes are seen as providing a more structured environment for cryptocurrency operations in the United States. Deutsche Bank (ETR:DBKGn) has pointed out that the new legislation may drive Ethereum prices higher as investors look for yield alternatives.

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