Wall Street bank JPMorgan (JPM) upgraded Coinbase (COIN) from “overweight” to “neutral” and raised its price target to $404, citing new monetization opportunities and reduced risks that make the crypto exchange more attractive compared to its peers.
Shares were up about 4% in early trading, around $332.
The bank highlighted two key enablers: a potential base token and enhanced USDC payments.
JPMorgan analysts said Coinbase is exploring a token for Base, its Layer 2 blockchain launched in August 2023, which has become one of the largest in the ecosystem.
A token could allow Coinbase to capture more of Base’s growth, with the bank estimating a possible market cap of $12 billion to $34 billion and up to $12 billion in value accruing to Coinbase. According to JPMorgan, the move could spur development, community participation and infrastructure growth in the long term.
The bank’s analysts also noted Coinbase’s efforts to better monetize USDC by offering returns to customers through its Coinbase One subscription service. By segmenting users and offering a 4% return to subscribers, Coinbase could add about $1 per share to annual profit, JPMorgan said.
Although competition from decentralized exchanges (DEXs) remains a risk, analysts said the market share between DEXs and centralized exchanges has stabilized. He added that Coinbase’s integrated model, spanning brokerage, market making, trading and custody, should help maintain profitability even as fees decline.
JPMorgan valued Coinbase at 50 times projected 2027 earnings, factoring in $4 billion from a potential base token, and set a price target of $404 for December 2026.
Learn more: Coinbase Opens Amex Card with Up to 4% BTC Cash Back for US Coinbase One Members
