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 crypto prices had turned bullish as seasonal strength and growing institutional demand aligned with favorable regulatory momentum.
Coinbase delivered better-than-expected results driven by an increase in trading activity, a rebound in asset prices and continued growth in its subscription and services business. Total revenue of $1.9 billion beat the $1.8 billion that FactSet analysts had expected.
Coinbase shares were 0.6% lower in early trading, around $318.50.
HC Wainwright noted that despite the US government shutdown, it sees a strong likelihood that market structure legislation will pass the Senate by the end of the year. Such progress, the bank said, could serve as an important catalyst for Coinbase shares.
The analysts said they expected Coinbase to deliver stronger-than-expected results, with upside to consensus revenue forecasts driven by higher subscription and service revenue, improved retail margins and contributions from the acquisition of Deribit in August.
For 2025, analysts now see total revenue of $7.4 billion, up from $7.1 billion previously, with adjusted EPS rising to $4.99 from $4.45. The higher stock price target of $425 reflects a 13.1x enterprise value-to-revenue multiple applied to its 2026 estimate of $9.1 billion.
The bank warned that risks include Coinbase’s reliance on retail, volatility in crypto asset values, changing regulation and competition within the digital asset ecosystem.
Read more: Analysts expect strong 3rd quarter for Coinbase, but are very divided on the future
