Bernstein Predicts 90% Surge for Coinbase (COIN) with $510 Price Target

Despite significant declines in its stock valuation, analysts at Bernstein have a bullish outlook for Coinbase (COIN). With a target price of $510, they believe Coinbase is transitioning from a trading platform to a comprehensive financial hub. This article explores Bernstein's analysis and the potential future of Coinbase's stock.

Key Takeaways

Coinbase's stock has dropped nearly 40% from its July peak of $444, currently trading around $271.
Bernstein holds a bullish price target of $510 for Coinbase, anticipating a rise above previous highs.
The shift towards becoming an "everything exchange" and regulatory clarity are critical for Coinbase's future.
Upcoming product innovations and the integration with Deribit are expected to enhance Coinbase's offerings.
Bernstein's “Buy” rating is supported by a positive sentiment from other analysts, indicating confidence in the stock.

Coinbase

Bernstein Forecasts New Bullish Phase for Coinbase

Coinbase (COIN), the largest cryptocurrency exchange in the United States, has seen a sharp decline in its stock price, falling close to 40% from its high of $444 in July to about $271 at present. This decline has been influenced by market fluctuations and increased volatility across the broader cryptocurrency environment.

Despite these hurdles, analysts at Bernstein maintain an optimistic view of Coinbase's stock performance, suggesting that it may enter a new bullish phase. They project that COIN could rise above previous all-time highs and set a price target of $510. Bernstein notes that Coinbase is evolving from a strictly trading platform into what they refer to as an “everything exchange.”

Bernstein analysts, led by Gautam Chhugani, acknowledge the fragile market conditions, indicating that price shifts in cryptocurrencies have a direct effect on the stocks of crypto-exposed companies. They differentiate the current market atmosphere from past crypto downturns, attributing speculative excess mainly to what they call “MSTR copycats,” referencing the stock performance of Strategy (previously known as MicroStrategy).

Central to Bernstein's positive outlook is Coinbase's strategic move away from heavily relying on volatile spot trading revenues. They argue that the exchange is transforming into a comprehensive financial platform. Analysts also suggest that clearer regulatory guidance in the U.S. could lead to a revaluation of Coinbase's business segments, allowing the company to compete more effectively with offshore rivals who benefit from quicker token listings and fundraising options.

Coinbase’s recent venture into token issuance, showcased by Monad’s (MON) recent listing, indicates a growing market interest. Bernstein points out that such launches can positively affect trading activity, creating a cycle of issuance, listings, and increased trading volumes.

Confident Ratings for COIN

As we look to the future, one of the significant drivers for Coinbase is the upcoming product showcase scheduled for December 17. This event is expected to reveal developments in tokenized equities, prediction markets, and other tools that broaden the exchange’s services beyond mere spot crypto trading. Additionally, the integration with Deribit is anticipated to support Coinbase’s growth in derivatives trading, enhancing its competitive position relative to platforms like Robinhood, as both companies diversify their offerings.

On the consumer side, the Coinbase Base app will focus on wallet services, payment solutions, and social features, serving as a centralized hub for exploring various token markets. This aligns with the analysts' optimistic views regarding Coinbase's future.

Bernstein has reaffirmed its “Buy” rating for Coinbase, backed by a considerable price target of $510, showcasing their confidence in the trajectory of COIN's growth. Furthermore, Monness Crespi's recent upgrade of Coinbase’s rating from “Neutral” to “Buy,” with a revised target price of $375, adds to the positive sentiment surrounding the stock’s future value amid the current price drop.

Coinbase The daily chart shows COIN attempting to establish a firm stance above the $270 threshold. Source: COIN on TradingView.com

Featured image from DALL-E, chart from TradingView.com