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Investing.com -- Bernstein raised its price target on Coinbase (NASDAQ:COIN) to $510, the highest on the Street, calling it “the most misunderstood company in our crypto coverage universe.”
The analysts, led by Gautam Chhugani, reiterated an Outperform rating and set the new price target of $510, which implies 48% upside from current levels.
The broker sees Coinbase as the dominant U.S. crypto trading platform and the only crypto-native firm in the S&P 500. Its leadership spans trading, custody, and infrastructure.
Bernstein pointed to Coinbase’s growing role as a “crypto universal bank,” highlighting its largest stablecoin business amongst exchanges, institutional custody, derivatives, and on-chain infrastructure via the Base blockchain.
“Despite multiple growth levers, consensus remains bearish on the largest Crypto universal bank,” analysts wrote.
The report noted Coinbase’s Q1 results and raised its 2027 earnings estimates by 28% to $20.38 per share, driven by operating leverage.
Despite broad skepticism on Wall Street, Bernstein’s 2025 and 2026 EPS estimates for Coinbase are more than double the consensus. The firm now values the stock at 25 times its projected 2027 earnings, up from a previous multiple of 21.
Furthermore, analysts argue that concerns around rising competition have not materialized. Coinbase’s retail take rate remained stable in Q1 at 140bps, and its global spot trading market share rose from 7.2% to 7.8%.
“We believe that COIN’s customers value trust/safety more relative to mere pricing, given the treacherous track record of exchange hacks/ frauds globally,” the analysts added.
They also expect the launch of perpetual futures in the U.S. to expand Coinbase’s derivatives footprint, which already includes the international exchange and Deribit, the largest crypto options platform globally.
Coinbase’s growth in non-trading revenues—particularly from staking, stablecoins, and custody—was also a key factor behind the revised outlook. In 2024, non-trading revenue made up about 42% of the company’s total, up from 14% in 2020.
“COIN has also added several fast-growing businesses such as institutional custody, Base blockchain services and Prime lending desk, thus, emerging as the ‘Amazon of crypto financial services’, offering crypto financial services beyond simple trading,” the analysts added.
Bernstein now expects Coinbase to generate $9.5 billion in revenue in 2025, rising to $12.7 billion in 2026 and $14.1 billion in 2027. The increase is driven by strong growth in both trading—particularly perpetual futures—and non-trading segments like staking and stablecoins.
Despite a reduction in reported 2025 EPS due to fair value losses, the brokerage raised its adjusted EPS estimate for the year to $11.26.