H.C. Wainwright has upgraded Coinbase (COIN) from sell to buy, increasing its price target from $300 to $425 ahead of the crypto exchange’s third-quarter earnings announcement on Thursday.
The bank stated that its forecast for cryptocurrency prices has turned positive due to the convergence of seasonal strength and rising institutional demand along with encouraging regulatory developments.
Coinbase exceeded expectations with results fueled by increased trading volumes, a rebound in asset valuations, and ongoing growth in its subscription and services segment. The company’s total revenue reached $1.9 billion, surpassing the $1.8 billion anticipated by FactSet analysts.
In early trading, Coinbase shares dipped by 0.6%, trading at approximately $318.50.
According to H.C. Wainwright, despite the ongoing U.S. government shutdown, there is a strong likelihood that market structure legislation will pass in the Senate by year-end. This development could be a significant catalyst for the stock price of Coinbase, the bank noted.
The analysts anticipate that Coinbase will report results that exceed expectations, with increases in consensus revenue projections driven by enhanced subscription and services revenue, better retail trading spreads, and contributions from the recent acquisition of Deribit in August.
For 2025, the analysts now forecast total revenue of $7.4 billion, up from a previous estimate of $7.1 billion, with adjusted EPS projected to rise to $4.99 from $4.45. The heightened share price target of $425 corresponds to a 13.1x enterprise value-to-revenue multiple based on the 2026 projection of $9.1 billion.
The bank cautioned about potential risks including Coinbase’s dependency on retail trading, volatility in crypto asset prices, changing regulations, and competition within the digital asset landscape.
Read more: Analysts Expect Strong Q3 for Coinbase But Disagree Sharply on Its Future
