BofA Boosts Coinbase Price Target on Stablecoin Revenue Outlook
BofA Securities has raised its price target for Coinbase shares to $203 from $174, while maintaining a Buy rating. The stock is currently trading at $183, down 52% over the past year. InvestingPro data suggests the shares may be overvalued based on Fair Value analysis.
The firm increased its earnings per share estimates for Coinbase to $3.46 for 2027 and $6.76 for 2028, up from $3.07 and $5.81 respectively. This adjustment reflects higher forecasts for stablecoin revenues following the September Federal Reserve rate hike. Analysts do not expect the company to be profitable this year.
BofA also lowered its third-quarter 2026 and full-year 2026 EPS estimates to -$0.24 and -$0.73 from -$0.22 and -$0.71 due to lower trading volumes. Crypto industry spot volumes totaled $2.4 trillion in the third quarter of 2026, with $142 billion at Coinbase, compared to $2.6 trillion in the second quarter, with $144 billion at Coinbase. This decline occurred despite a rally in Bitcoin and Ethereum prices, which rose 43% and 70% respectively in the third quarter of 2026.
The $203 price target is based on a 30x multiple on the firm’s 2028 earnings per share estimate. In other recent news, Coinbase announced changes to its Coinbase Advanced platform, including reduced trading fees for active traders. Analyst firm Mizuho maintains a Neutral rating on Coinbase, expressing concerns over these fee cuts. Baird also reiterated a Neutral rating for Coinbase, citing the SEC’s recent Innovation Exemption as a positive regulatory development.