BofA Boosts Coinbase Price Target on Stablecoin Revenue Outlook
Bank of America Securities has upgraded its price target for Coinbase shares, raising it to $203 from $174 while keeping a Buy rating. The exchange's stock is currently trading at $183, marking a 52% decline over the past year. Analysts suggest the shares may be overvalued based on fair value assessments.
The firm adjusted its earnings per share estimates for Coinbase, increasing forecasts for 2027 and 2028 to $3.46 and $6.76, up from $3.07 and $5.81. This revision reflects higher expectations for stablecoin revenues following the Federal Reserve's September rate hike. However, analysts do not expect the company to turn a profit this year.
BofA also lowered its third-quarter 2026 and full-year 2026 EPS estimates due to reduced trading volumes. Crypto spot volumes totaled $2.4 trillion in Q3 2026, with $142 billion at Coinbase, down from $2.6 trillion and $144 billion in the previous quarter. This decline occurred despite a rally in Bitcoin and Ethereum prices, which rose 43% and 70%, respectively.
The $203 price target is based on a 30x multiple of the firm’s 2028 EPS estimate. In other news, Coinbase has introduced changes to its Advanced platform, including lower trading fees for active traders. Analysts from Mizuho and Baird maintain Neutral ratings, citing concerns over fee cuts and regulatory developments.