Raymond James reiterates Market Perform rating on Coinbase stock

Investing.com - Raymond James maintained its Market Perform rating on Coinbase Global Inc. (NASDAQ:COIN) ahead of the company’s third-quarter 2025 earnings report, due October 30. The stock, currently trading at $341.55, has seen a significant 94.5% surge over the past six months despite an 11.8% pullback last week. According to InvestingPro analysis, the company appears to be trading above its Fair Value.

The investment firm cited an uneven cryptocurrency market backdrop in recent months, noting that while digital asset prices have generally remained elevated, trading volumes have softened since their late 2024 peak.

Raymond James expressed concerns about the sustainability of Coinbase’s current revenue and EBITDA momentum given these market conditions.

The firm also warned that increased regulatory certainty in the cryptocurrency space would likely invite competition from non-crypto-native brokerage platforms, potentially leading to price compression and eventual degradation of Coinbase’s economics.

Raymond James remains uncertain about Coinbase’s ability to offset potential risks to its retail transaction revenue by transitioning into a cryptocurrency infrastructure provider, maintaining a cautious view of the firm’s long-term earnings potential.

In other recent news, Grayscale Bitcoin Trust ETF has updated its service agreements with Coinbase and BNY Mellon. This new agreement involves Coinbase Custody Trust Company, LLC, and Coinbase Credit, Inc., outlining custodial and prime broker services for the trust’s bitcoin holdings. Similarly, Grayscale Ethereum Mini Trust ETF has entered a new prime broker agreement with Coinbase, effective October 3, 2025, which details the custody and management of the Trust’s Ether holdings.

Coinbase Global Inc. has been in focus as Citizens reiterated its Market Outperform rating for the company, anticipating improved third-quarter results compared to the previous quarter. Additionally, Rothschild Redburn upgraded Coinbase’s stock rating from Neutral to Buy, citing successful revenue diversification efforts. The firm noted that Coinbase has reduced its reliance on retail trading fees significantly, which is expected to continue into 2025. These developments reflect ongoing strategic adjustments and analyst perspectives on Coinbase’s evolving business model.

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