Benchmark Initiates Coinbase Coverage With Buy Rating, Sees 27% Upside
Benchmark has launched coverage on Coinbase (COIN), assigning the crypto exchange a buy rating and setting a price target of $252, citing the company’s dominant market position and future growth potential. Shares jumped more than 4% in early trading, hovering around $198.
In its report released Wednesday, Benchmark praised Coinbase for building the most scalable crypto trading platform in the industry, with an estimated 66% share of the U.S. market. Analyst Mark Palmer highlighted the platform’s extensive suite of offerings that cater to both retail and institutional investors.
Palmer noted that Coinbase’s stock has slumped nearly 50% since early December, a decline he believes doesn’t reflect the improving outlook for the crypto sector. According to Benchmark, the recent underperformance could be short-lived as the U.S. moves closer to regulatory clarity, particularly for stablecoins—a segment where Coinbase is deeply involved through its role in managing USD Coin (USDC).
Momentum on the regulatory front appears to be building. Earlier this month, a House committee advanced stablecoin legislation in tandem with the Senate, signaling a potential breakthrough that could pave the way for broader institutional adoption of digital assets.
“As key digital asset legislation progresses, we could see a surge in institutional crypto interest,” Palmer wrote.
The report also pointed to Coinbase’s growing revenue streams beyond trading, especially from its subscription and services businesses, which are expanding faster than its core trading operations—another catalyst that could drive valuation higher.
