- Bernstein has raised its COIN price target by 64%, from $310 up to $510.
- As key drivers, the research firm pointed to stablecoins growth and institutional crypto-moat.
Coinbase [COIN] On the 25th, we hit our six-month peak of $369.28. This extended Q2 growth to 140%. It was the result of recent momentum. bullish call Bernstein Research, a research company.
The Bernstein team, headed by Gautam Chugani, has raised COIN’s target price by 64 percent from $310 previously to $510. They claim that Coinbase will be able to meet the new target.
“The most misunderstood company.”
And,
“Amazon of crypto financial services.”
“The most misunderstood stock” Gets a New Storyline
Bernstein’s analysts have argued that Coinbase has been underrated in all areas.
It’s the only crypto firm in the S&P 500 and runs the largest stablecoin business across exchanges, contributing nearly 15% of total revenue.
“It dominates institutional crypto (powers custody for 8 out of 11 Bitcoin ETF asset managers), acquired the largest global crypto options exchange (Deribit).”
Analysts expect Coinbase’s stablecoin to be a huge success.
Bernstein also noted that Coinbase has a moat unrivaled in the institutional crypto space, due to its custody services and acquisition of Deribit, an option exchange.
Bernstein analysts believe that Coinbase’s Base is the Ethereum layer 2 network (L2), which Bernstein has seen in recent JPMorgan JPMD testing, to be the basis of a tokenization system for institutional clients.
Bernstein’s valuation
COIN has a 64% increase in value based on the analyst’s 2x forecast for earnings (EPS) over the next two year.
“We are 2.2x consensus on 2025E EPS and 2.3x consensus on 2026E EPS. We present a deep dive primer on Coinbase. We also update the model and move up our target price (PT $510, Outperform).”
Coinbase is expected to have a total revenue of $9.5 Billion by the year 2025. This will increase to $14.5 Billion by 2026.
Growth would be a bThe analysts noted that the increases in revenue from trading and non-trading sources like stablecoins and staking will be a boost. The analysts made a note of the EPS forecasts.
Our adjusted EPS (without FV) for 2025E has increased from $10.26 to $11.26. We have increased our estimates of EPS for 2026E to $17.22 (up 22% from our previous estimate). For 2027E we adjusted the estimates up to $20.38 (up 28.8% compared with previous estimates).
However, they downplayed any bearish thesis on Coinbase, stating that competition from Robinhood and other traditional brokers is still ‘months away.’
COIN had a pre-market price of $357 at the time this article was published. That suggests that there is a potential for 43% growth if we reach our $510 goal.
Source: TradingView, COIN
COIN’s performance has risen over 140% since April, beating some selected currencies. crypto equities In Q2 Recovery.
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Source: ambcrypto.com
