Bernstein Predicts Coinbase (COIN) to Surge 90% Towards a $510 Price Target
Despite a challenging period marked by a nearly 40% decline from its July peak of $444 to approximately $271 per share, analysts at Bernstein are maintaining a highly optimistic "Buy" rating on Coinbase (COIN) stock. They foresee a new bullish phase for the largest cryptocurrency exchange in the U.S., projecting a potential surge that could see its valuation reach $510 per share. This optimistic outlook comes amid broader crypto market volatility and strategic shifts within Coinbase's operational model.
Strategic Diversification Fuels Bullish Sentiment
Central to Bernstein's confidence is Coinbase's strategic evolution beyond a mere trading platform into what analysts term an "everything exchange." This diversification aims to lessen reliance on volatile spot trading revenues by expanding into comprehensive financial services. The analysts believe that clearer regulatory guidelines within the U.S. could significantly revalue these new business lines, allowing Coinbase to close the gap with offshore competitors who benefit from faster token listings and fundraising fees. This regulatory clarity is anticipated to be a major catalyst for growth.
Expanding Horizons: Token Issuance and Product Innovation
Coinbase's foray into token issuance through a launchpad-style model, as demonstrated by the recent Monad (MON) listing, highlights a growing interest in new market activities. Bernstein suggests that these launches directly stimulate trading, creating a positive feedback loop of issuance, listing, and increased trading volume. Looking ahead, a highly anticipated product showcase on December 17 is expected to unveil significant developments in tokenized equities, prediction markets, and other innovative tools designed to broaden the exchange's offerings beyond traditional crypto spot trading. Furthermore, the integration with Deribit is poised to bolster Coinbase's derivatives capabilities, positioning it closer to diversified platforms like Robinhood. On the consumer front, the Coinbase Base app, with its focus on wallet services, payments, and social features, is seen as a pivotal, centralized access point for the wider token markets, further reinforcing the bullish projections. The reaffirmed $510 price target from Bernstein, coupled with Monness Crespi's upgrade to "Buy" with a $375 target, underscores a growing consensus among analysts regarding COIN's robust growth trajectory, even amidst current price fluctuations.
