Bank of America Boosts Coinbase Stock Target to $203

Bank of America has raised its price target for Coinbase stock to $203, up from $174, while maintaining a Buy rating. The adjustment comes despite a reduction in near-term trading volume forecasts. Instead, the bank increased its earnings estimates for 2027 and 2028, citing expected gains from stablecoin revenue in a higher interest-rate environment.

Coinbase stock rose on October 5 following the announcement. The bank's revised target is about 6.6% above the stock's trading price near $190.43. The move reflects stronger stablecoin revenue projections, which are expected to support Coinbase's longer-term earnings outlook. Higher interest rates are anticipated to boost income from reserves backing stablecoins, providing an additional revenue stream beyond traditional trading activities.

Despite strong third-quarter gains in major cryptocurrencies like Bitcoin (+43%) and Ethereum (+70%), trading volumes have not matched the pace of price appreciation. This discrepancy led Bank of America to lower some near-term forecasts. Coinbase's first-quarter financial results also showed pressure on earnings, with revenue declining to $1.41 billion and a net loss of $394 million, compared to $2.03 billion in revenue and a net income of $65.61 million in the same period a year earlier.

Bank of America's latest target remains below its earlier 2026 forecasts for Coinbase, which have been adjusted downward from $340 in January to $218 in May and then to $174. At the time of reporting, Coinbase stock was trading at $186.46, up 1.89% on the day. Other Wall Street firms hold varying views on Coinbase, with Citizens JMP maintaining a Buy rating and Barclays rating the stock Sell.