Coinbase Stock Could Be a Buy With Potential Upside of 60%+ Amid Trump's New Crypto Policy: Bernstein
The brokerage initiated coverage on Coinbase shares with a $310 price target and an Overweight rating.
Posted by Will Canny | Edited by: Stephen Alpher Updated: March 18, 2025 14:25 UTC Published: March 18, 2025 12:42 UTC
Key points:
- Bernstein initiated coverage on Coinbase with an Overweight rating and a $310 price target.
- The report argues that the crypto exchange is the most suitable platform to benefit from the new regulatory environment under the Trump administration.
- According to the broker, the growing influence of the United States in the crypto market should offset the competitive challenges that Coinbase may face.
The crypto industry is expected to become part of the mainstream US financial market as the regulatory environment improves, and Coinbase (COIN) is well positioned to take advantage of these favorable conditions, broker Bernstein said in a report on Monday.
Bernstein began coverage of the crypto exchange with an above-average rating and a $310 price target. About 41% of Wall Street analysts recommend buying the stock, 7% recommend selling, and the rest hold, according to FactSet. Shares fell 2% to $185.20 in early trading.
The report highlights that regulatory clarity will lead to increased competition for Coinbase from fintech companies, brokers and banks.
However, a “strong bull market and growing US influence on the continent” are expected to more than offset pressure on market share and pricing, analysts led by Gautam Chhugani said.
Improved regulatory frameworks under the new Donald Trump administration are seen as a significant factor in driving the growth of digital assets, with the president promising to make the US the “crypto capital of the world.”
The Securities and Exchange Commission (SEC) has created a new cryptocurrency task force, led by Commissioner Hester Peirce, to develop new rules for the space.
The report notes that Coinbase has been successful in diversifying its services beyond trading and now has a strong position in USD-denominated stablecoins as well as cryptocurrency yield services such as staking.
Bernstein says it expects Coinbase's non-trading revenue to grow at a compound annual growth rate (CAGR) of approximately 31% between 2024 and 2026.
The report also said this provides a “robust balance to the cyclicality of trading revenues.”
Coinbase recently received FIU registration, opening the door for a return to the Indian market, the company announced in a blog post earlier this month.
Read More: Coinbase Plans Return to India After Receiving Regulatory Registration with FIU
