Investment bank HC Wainwright upgraded Coinbase (COIN) to buy from sell and raised its price target on the stock to $425 from $300 before the crypto exchange reported third-quarter earnings on Thursday.
The investment bank said its outlook for cryptocurrency prices had turned bullish as seasonal strength and rising institutional demand aligned with a favorable regulatory push.
Coinbase posted better-than-expected results driven by an increase in trading activity, a rebound in asset prices, and continued growth in its services and subscriptions business. Total revenue of $1.9 billion exceeded the $1.8 billion expected by FactSet analysts.
Coinbase shares fell 0.6% in early trading, around $318.50.
HC Wainwright noted that despite the US government shutdown, he sees a high probability 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 stock.
Analysts said they expected Coinbase to post better-than-expected results, with consensus revenue forecasts rising 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 previously, and adjusted earnings per share will rise from $4.45 to $4.99. The stock’s higher price target of $425 reflects an enterprise value-to-earnings multiple of 13.1 times applied to its 2026 estimate of $9.1 billion.
The bank warned that risks include Coinbase’s dependence on retail trading, volatility in crypto asset values, changes in regulation and competition within the digital asset ecosystem.
Read more: Analysts expect a strong third quarter for Coinbase, but disagree on its future
