Wall Street brokerage Bernstein maintains its most aggressive Coinbase (COIN) rating on Wall Street, with an Outperform rating and $510 price target despite market pullbacks and Bitcoin updates Volatility has roiled sentiment in cryptocurrency-related stocks.
In a note written by analysts led by Gautam Chhugani on Monday, the broker described the current set-up as “fragile,” with the cryptocurrency’s volatile price action spilling over into public market proxies.
But analysts at the firm believe this downturn is different from previous cryptocurrency busts because the underlying business appears to be still holding up and the bubbles are more concentrated. Bernstein noted that excessive speculation was largely limited to “MSTR copycats,” while describing larger players as making more permanent shifts in how the market is monetized.
For Coinbase, this shift is at the heart of the bullish thesis. Analysts say the exchange is working to reduce its reliance on spot trading by building an “everything exchange” that is closer to a full-stack financial platform than a single-product crypto venue.
Analysts note that stablecoins have become a significant contributor to Coinbase’s revenue, but investors often continue to view ancillary operations such as staking and custody as another form of cryptocurrency beta.
Bernstein sees clearer U.S. regulations as a key catalyst to re-evaluate these product lines, accelerate Coinbase’s expansion and narrow the advantages historically enjoyed by offshore rivals that list tokens faster and charge fundraising-related fees.
The broker also said that Coinbase is moving further toward issuance of tokens through a launchpad-style approach, which can generate success fee revenue while creating a flywheel: more issuances prompt more listings, ultimately boosting trading activity. Bernstein cited Monad’s launch as evidence of demand for the model.
Key Catalysts for the Future
Another bullish case is a near-term product catalyst: Coinbase’s product showcase scheduled for Dec. 17, which Bernstein expects to highlight the company’s efforts beyond spot trading to include tokenized stocks and prediction markets.
The company also noted that the derivatives business is growing with the help of Deribit, a trend that could make Coinbase look increasingly similar to broker-dealers like Robinhood (HOOD), with the two models converging as each side adds more products traditionally associated with the other.
On the consumer side, the report flags Coinbase’s Base app as a potential onramp, blending wallet functionality, payments and social features, and providing broader token access via on-chain integration.
Taken together, the broker positions Coinbase’s strategy as a pivot away from a primarily spot-driven exchange toward a broader distribution and services platform, which it believes can be compounded by regulation, new issuance, and an expanded product portfolio, even as near-term sentiment remains affected by cryptocurrency volatility.
As of press time, Coinbase’s stock price rose 3.7% to $269.42, with a potential upside of nearly 90% from Bernstein’s target price.
Read more: William Blair says investors should buy Coinbase and Circle on dips
