Goldman Sachs Upgrades Coinbase To Buy Amid Crypto Sector Recovery

TLDR

• Goldman Sachs upgrades Coinbase to buy and sets a $303 price target.
• COIN shares rose 7.77% on Jan. 5 after Goldman’s upgrade.
• Coinbase expects 12% annual revenue growth through 2027, per analysts.
• Subscription services now contribute 40% of Coinbase’s total revenue.

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Goldman Sachs has upgraded Coinbase (COIN) from “neutral” to “buy,” setting a 12-month price target of $303 per share. The new rating suggests more than 30% upside from current trading levels and reflects the bank’s growing confidence in infrastructure-focused crypto firms heading into 2026.

Shares of Coinbase rose 7.77% on January 5 following the upgrade. The stock climbed as high as 8% during intraday trading, closing at $254.92. The rating marks the first “buy” from Goldman on Coinbase since 2021.

Resilient Trading Environment and Regulatory Developments Support Upgrade

In a research note led by analyst James Yaro, Goldman Sachs described the current outlook for brokers and crypto firms as “selectively constructive.” The analysts pointed to a stable retail trading environment and steady progress in US crypto regulation as key growth drivers.

“We expect the meeting of traditional retail brokerage and crypto trading to continue in 2026,” Yaro wrote. He added that this trend could increase competition across the sector, affecting market share and pricing strategies.

The bank sees regulation as a catalyst for broader crypto adoption. Yaro noted that institutional adoption has remained limited so far but may grow as regulatory clarity improves.

Coinbase’s Growth Strategy Gains Attention

Goldman Sachs expects Coinbase to deliver a 12% compound annual growth rate (CAGR) in revenue through 2027, outperforming its peers, which are forecasted at 8%. The analysts attribute this to the company’s strong brand, customer acquisition efficiency, and expansion beyond trading.

Yaro stated, “Coinbase’s scale and brand strength are key drivers of above-peer revenue growth and market share gains.” He also pointed to the company’s growing subscription and services segment, which now contributes 40% of total revenue.

Coinbase has launched several new services, including a commission-free stock and ETF trading platform. It also integrated Kalshi, a regulated prediction market, into its app. These initiatives align with Coinbase’s long-term goal of becoming a multi-product financial platform.

Global Expansion and Product Diversification in Focus

Coinbase has expanded its international presence, especially in Asia and the Middle East. The company recently resumed operations in India after a two-year pause and received regulatory approval for a minority investment in CoinDCX.

These moves are part of Coinbase’s broader strategy to grow beyond the US market. The firm is also building out services in commerce through Coinbase Business and in banking, aiming to attract institutional and retail users alike.

According to Goldman, these structural growth areas will allow Coinbase to scale operations and reduce earnings volatility over time.

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