Oppenheimer lifts Coinbase stock target to $293 on S&P 500 inclusion

On Tuesday, Oppenheimer analysts raised the price target for Coinbase Global Inc. (NASDAQ:COIN) shares to $293 from $293, while maintaining an Outperform rating. The revision follows the announcement by the S&P Index Committee on May 12 that Coinbase will be joining the S&P 500 index effective May 19, taking the spot of Discover Financial Services (NYSE:DFS), which was acquired by Capital One Financial (NYSE:COF).

The analysts had previously identified Coinbase’s potential inclusion in the S&P 500 as a significant catalyst for the company in 2025. They believe that the inclusion will have major implications for both Coinbase and the broader cryptocurrency industry. Being part of the S&P 500 is expected to trigger increased purchases by index funds and garner more attention from non-index funds that use the S&P 500 as a benchmark.

The lack of substantial institutional ownership has previously been a point of concern for Coinbase, but with this development, it is now seen as a positive driving force. The revised price target of $293 is based on the assumption of heightened institutional demand and support for the stock following the inclusion in the index.

Coinbase’s new position in the S&P 500 is anticipated to enhance its visibility and credibility among institutional investors. This move is significant as it reflects the growing integration of cryptocurrency-related businesses into mainstream financial markets. The company’s entry into the index marks a milestone for the crypto industry, indicating a level of maturity and acceptance that could potentially lead to further institutional investment in the sector.

Coinbase is set to replace DFS in the S&P 500 following the latter’s acquisition by COF, marking a strategic shift in the makeup of the index. This change reflects ongoing adjustments in the financial landscape and the increasing relevance of cryptocurrency platforms in the investment community.

In other recent news, Coinbase Global Inc. reported its first-quarter earnings, showing a mixed financial picture with a slight miss on revenue but adjusted earnings per share meeting analyst expectations. The company experienced a 24% year-over-year revenue increase, driven by a 26% rise in trading volume, although there was a decline in trading activity in April and May. Coinbase also announced a significant acquisition of Deribit, a leading crypto options exchange, for $2.9 billion, marking the largest acquisition in the cryptocurrency industry. This acquisition is expected to be immediately beneficial, according to H.C. Wainwright analyst Mike Colonnese, who maintained a Buy rating but lowered the price target to $305.

Compass Point analyst Ed Engel upgraded Coinbase’s stock rating from Sell to Neutral, citing potential growth in Altcoin prices and retail trading activity. Meanwhile, Cantor Fitzgerald increased its price target for Coinbase to $253, maintaining an Overweight rating, despite acknowledging mixed results against consensus estimates. Citi analyst Peter Christiansen reaffirmed a Buy rating with a $270 price target, highlighting Coinbase’s strategic initiatives, such as Bitcoin-backed loans and new product introductions.

Oppenheimer reduced its price target to $269 while maintaining an Outperform rating, noting the company’s performance met expectations but highlighted macroeconomic uncertainties affecting trading volumes. Analysts suggest that future regulatory clarity and easing trade tensions could positively impact Coinbase’s market position.

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