Bernstein thinks investors are underappreciating Coinbase’s potential. Analyst Gautam Chhugani stood by his outperform rating on the stock and hiked his price target to $510 per share from $310. Shares of Coinbase closed at $344.82 on Tuesday afternoon, meaning that Chhugani’s revised target represents upside of approximately 48%. “Coinbase is the most misunderstood company in our Crypto coverage universe. … Despite multiple growth levers, consensus remains bearish on the largest Crypto universal bank,” he wrote. “It is the only Crypto company in the S & P500, dominates U.S. Crypto trading market, runs the largest stablecoin business amongst exchanges, dominates institutional Crypto, acquired the largest global crypto options exchange and runs the largest and fastest chain on Ethereum forming the tokenization network.” COIN YTD mountain COIN YTD chart Chhugani noted that Coinbase has continued to thwart analysts’ bear theses, with its market share persisting despite the threat of new competition. Even upcoming crypto launches from traditional brokerage firms are unlikely to offer full-suite products, already making them less competitive than those of Coinbase. The company is also slated to be a beneficiary of the GENIUS Act, which would set a mandate for the stablecoin industry, alongside the upcoming CLARITY act, which will provide greater regulation to digital assets. A much larger opportunity also presents itself to Coinbase in the form of the futures market, with Chhugani noting that the crypto derivatives opportunity in the U.S. alone has “massive headroom.” After adding bitcoin and Ethereum futures trading, the company is now gearing up to launch perpetual futures trading. Chhugani remarked that his new price target reflects an estimate for Coinbase to generate around $9.5 billion in total revenue this year. Coinbase shares rose 2% in the premarket following the target increase.
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