Morgan Stanley Sees Coinbase as Platform for Future Growth
Morgan Stanley has given Coinbase an 'equalweight' rating and set a price target of $250. The bank believes that Coinbase is trying to expand its business beyond cryptocurrency trading by offering stocks, commodities, and tokenized assets.
This strategy could be crucial for Coinbase's growth as it already generates revenue from services like custody, financing, and stablecoin partnerships, which provide infrastructure that can keep generating fees even if the latest crypto product comes and goes.
Morgan Stanley predicts that Coinbase's revenue will dip in 2026 to $5.9 billion, a decrease of 18%, but will then rebound by 50% in 2027 to $8.9 billion. The bank also expects adjusted EBITDA (profit before certain costs) to jump from $1.8 billion in 2026 to $3.7 billion in 2027.
The margin is expected to rise from 31% in 2026 to 42% in 2027, demonstrating the potential for Coinbase's profits to swing quickly as revenue grows faster than expenses.