Investment bank HC Wainwright upgraded Coinbase (COIN) to buy or sell and raised its price target on the shares from $300 to $425 before the crypto exchange reports its third-quarter results on Thursday.
The investment bank said its outlook for crypto prices has turned bullish as seasonal strength and growing institutional demand align with favorable regulatory dynamics.
Coinbase reported better-than-expected results, driven by a surge in trading activity, a rebound in asset prices and continued growth in its subscription and services businesses. Total revenue of $1.9 billion exceeded the $1.8 billion expected by FactSet analysts.
Coinbase shares were down 0.6% in early trading, at around $318.50.
HC Wainwright noted that despite the US government shutdown, he believes it is highly likely that market structure legislation will pass the Senate by the end of the year. Such progress, the bank said, could serve as a major catalyst for Coinbase shares.
Analysts said they expected Coinbase to report stronger-than-expected results, with a rise in consensus revenue forecasts driven by higher subscription and services revenue, better retail trading spreads and contributions from the Deribit acquisition in August.
For 2025, analysts now forecast total revenue of $7.4 billion, up from $7.1 billion, with adjusted EPS increasing from $4.45 to $4.99. The higher stock price target of $425 reflects a company value-to-revenue multiple of 13.1x applied to its $9.1 billion 2026 estimate.
The bank warned that risks include Coinbase’s reliance on retail trading, volatility in the value of crypto assets, changing regulations, and competition within the digital asset ecosystem.
Learn more: Analysts expect strong third quarter for Coinbase but strongly disagree on its future
