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Investing.com -- JPMorgan upgraded Coinbase to Overweight from Neutral on Friday, saying risks are easing while new monetization opportunities could significantly boost the company’s equity value.
Analyst Kenneth Worthington also raised the bank’s December 2026 price target for the stock to $404 from $342, reflecting growing optimism about Coinbase’s blockchain and stablecoin initiatives.
“We are upgrading Coinbase to Overweight as we look ahead to emerging monetization opportunities and abating risks at what we see is an attractive valuation versus cryptocurrency peers,” the JPMorgan analyst said.
He highlighted two key drivers, the potential launch of a Base token and enhanced USDC payout strategies, that could meaningfully increase earnings power.
JPMorgan explained that Coinbase “is exploring a Base token, which we see accelerating the growth of development on the Base blockchain,” while also giving the firm a way to “equitize the success in what is the largest L2 on multiple metrics.”
The bank estimated the Base token could generate between $4 billion and $12 billion in value for Coinbase over time, within a total market capitalization of $12 billion to $34 billion.
JPMorgan also sees Coinbase “experimenting with yields on USDC” by segmenting customers and promoting Coinbase One, its subscription offering.
Worthington said differentiated yields “could be substantially additive to EPS,” estimating incremental annual earnings of up to $1.00 per share from this strategy.
The note added that risks from decentralized exchanges “are abating,” with market share stabilizing between DEXs and centralized platforms.
JPMorgan concluded that Coinbase’s vertical integration, spanning brokerage, custody, and exchange services, is “ supporting profitability even as pricing in US cash equities has gone towards zero for many equity-focused brokers.”