Coinbase stock gets reiterated Market Outperform rating by Citizens

Investing.com - Citizens maintained its Market Outperform rating on Coinbase Global Inc. (NASDAQ:COIN) with a price target of $440.00 ahead of the company’s third-quarter results. The stock has shown remarkable strength with a 132% return over the past year and currently trades near $387, though InvestingPro analysis suggests it may be overvalued at current levels.

The firm expects Coinbase to deliver improved core third-quarter results compared to the second quarter, though it notes the GAAP headline will likely be "noisy" due to a markdown from CRCL ownership offset by mark-up gains from balance-sheet crypto assets. With a strong financial health score and current ratio of 2.13, Coinbase maintains robust liquidity to support its operations.

Citizens’ quarterly estimate falls slightly below consensus, approximately 2% lower on adjusted EBITDA, but the firm remains significantly more bullish on the longer-term outlook with 2026 EBITDA projections nearly 40% above consensus estimates. InvestingPro subscribers can access 12 additional key insights and comprehensive financial metrics to better evaluate Coinbase’s growth potential.

The company’s third-quarter performance shows several positive indicators, including average USDC balances increasing approximately 11% sequentially (and 20% point-to-point), average daily crypto market capitalization appreciating in the upper-teens, and U.S. spot exchange volumes increasing over 20%.

The acquisition of options exchange Deribit, which closed midway through the quarter, will add some "comparable noise" to results but is expected to be accretive immediately, according to Citizens’ analysis.

In other recent news, Grayscale Ethereum Mini Trust ETF announced a new prime broker agreement with Coinbase, Inc., effective October 3, 2025. This agreement outlines the roles of Grayscale Investments Sponsors, LLC, the Trust, and Coinbase entities in managing the Trust’s Ether holdings, with Coinbase Custody Trust Company, LLC continuing as the custodian. Meanwhile, Rothschild Redburn upgraded Coinbase Global Inc. from Neutral to Buy, highlighting the company’s successful revenue diversification efforts. The firm noted that Coinbase has significantly reduced its reliance on retail trading fees, projecting that retail volume growth will mitigate pressure from transaction take rate compression. Additionally, CaliberCos Inc. has selected Coinbase Prime as its institutional platform for trading and custody, supporting its Digital Asset Treasury strategy. This partnership allows Caliber access to liquidity and institutional-grade custody through Coinbase Prime. The Securities and Exchange Commission is also planning to enable blockchain-based stock trading, which could allow investors to purchase tokens representing company shares on crypto exchanges.

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