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Investing.com -- Benchmark initiated coverage of Coinbase Global (NASDAQ:COIN) Inc with a Buy rating and $252 price target saying the company has a leading U.S. market position.
It also noted potential upside from a “soon-to-improve environment for crypto” driven by regulatory clarity and institutional demand.
Analysts said Coinbase, with approximately 66% domestic market share and $404 billion in assets as of year-end 2024, is “particularly well positioned to benefit" from pending legislation on stablecoins and crypto market structure.
Benchmark noted that the end of the ’air pocket’ in U.S. crypto regulation is approaching, which could remove a key overhang on both digital assets and COIN shares.
“As the leading U.S. crypto platform, COIN is particularly well positioned to benefit from the impact of regulatory clarity, in our view,” analysts wrote.
Benchmark sees stablecoin adoption as a meaningful catalyst, especially given Coinbase’s role in developing USD Coin with Circle, which entitles it to a portion of interest income from reserves.
The firm forecasts a 21% revenue CAGR through 2026, with non-trading subscription and services revenue growing about 36% annually.
“Investors appear to have lost sight of the extent to which stablecoin and market structure legislation could reignite crypto market activity,” Benchmark said, adding that recent valuation compression has left the stock no longer pricing in a turnaround.
As COIN continues to focus on the growth and expansion of its subscription and services offerings, the result should be a product mix with an increasing percentage of recurring revenue that should serve as a buffer against crypto market volatility, the analysts at Benchmark said.