Coinbase is primed for strong returns ahead, according to Bernstein. The firm initiated the cryptocurrency exchange with an outperform rating, setting a price target of $310. This is roughly 64% above where shares of Coinbase closed on Monday. Coinbase has struggled this year, losing 24% as momentum following the U.S. election faded. However, analyst Gautam Chhugani thinks the tides are due to turn soon for the company. He pointed to support for the crypto industry from President Donald Trump as a catalyst for gains ahead. COIN YTD mountain COIN YTD chart “With the Trump Administration’s aspiration to make America the ‘crypto capital of the world’, Coinbase remains the dominant platform (66% U.S market share) to ride the tailwinds,” the analyst wrote. Trump has already established a Bitcoin Strategic reserve and appointed investor David Sacks as crypto czar. Chhugani also highlighted a potential stablecoin bill, expected in the first half of 2025, alongside a bill coming in the second half that would further clarify digital asset securities and market structure. “Regulatory clarity brings more competition for COIN from fintechs, brokers, banks etc. However, we expect, a strong bull market and rising U.S onshore dominance to more than offset any competitive market share and pricing pressures,” he wrote. The analyst also pointed to Coinbase’s strong growth in services and businesses outside of cryptocurrencies. Going forward, he expects Coinbase to grow its non-trading revenues by a compound annual growth rate of around 31%. “COIN has done well to build a suite of crypto financial services beyond trading, particularly market leading share in USD stablecoins, crypto yield services such as staking,” he said, adding that this would provide a nice balance against the “cyclicality of trading revenues.” Analysts are split on the stock. Of the 26 who cover it, 11 rate it a buy or strong buy, according to LSEG. The remaining 15 have a hold rating on Coinbase.
