Morgan Stanley Gives Coinbase Price Target of $250 Amid Expansion Concerns
Morgan Stanley has initiated coverage of Coinbase with an Equal Weight rating and a $250 price target, which implies around 40% upside from current levels. Analyst Michael Cyprys notes that Coinbase has expanded its services beyond its exchange roots to include retail and institutional trading, custody, stablecoins, derivatives, staking, payments, and onchain infrastructure.
Cyprys highlights the company's evolution into a full-stack platform, with 7.6 million monthly transacting users and $246 billion of assets on the platform as of the second quarter. However, he cautions that retail crypto trading remains a key swing factor in Coinbase's revenue, making up about 40%.
The analyst forecasts a cyclical reset in 2026, followed by a sharp rebound in 2027 and normalization in 2028, when he expects around $3.0 billion of adjusted EBITDA. The price target is based on 21 times this estimate, which aligns with Coinbase's historical average and the digital-asset peer median.
Cyprys also mentions that regulatory clarity, the company's 'Everything Exchange' push into assets such as equities and prediction markets, and its stablecoin and Base infrastructure all expand its addressable market. However, these developments may also invite more competition and pricing pressure.