BofA Boosts Coinbase Price Target on Stablecoin Revenue Outlook
BofA Securities has upgraded its price target for Coinbase shares to $203 from $174, while keeping a Buy rating on the cryptocurrency exchange. Despite the positive outlook, Coinbase's stock has dropped 52% over the past year and currently trades at $183. Analysts suggest the shares may be overvalued based on Fair Value analysis, and they do not expect the company to turn a profit this year.
The firm revised its earnings per share estimates for Coinbase, raising projections for 2027 and 2028 to $3.46 and $6.76 from $3.07 and $5.81, respectively. This adjustment reflects higher forecasts for stablecoin revenues following the September Federal Reserve rate hike. However, BofA lowered its third-quarter 2026 and full-year 2026 EPS estimates due to lower trading volumes, even as bitcoin and ethereum prices surged 43% and 70% in the third quarter of 2026.
Coinbase recently announced changes to its Coinbase Advanced platform, including reduced trading fees for active traders. These changes aim to consolidate spot and derivatives into single volume tiers and lower the entry threshold for the first Advanced tier. Analyst firm Mizuho maintains a Neutral rating on Coinbase, citing concerns over the fee cuts, while Baird reiterated a Neutral rating but noted the SEC's recent "Innovation Exemption" as a positive development.
SEC Chairman Paul Atkins announced plans to proceed with crypto regulation after the Senate failed to pass the CLARITY Act. These developments come amid a broader rally in cryptocurrency markets, with both bitcoin and ethereum experiencing sharp gains.