Coinbase (COIN) Stock: Bank of America Upgrades to Buy at $340 Target

TLDR

• Coinbase received a Buy upgrade from BofA with $340 target after 40% decline from peak
• Analysts cite expanding addressable market and accelerated product rollouts as key factors
• Q3 revenue jumped 55% year-over-year to $1.9 billion with strong EBITDA growth
• Stablecoin revenue reached $355 million while platform assets topped $516 billion
• Two-thirds of Wall Street analysts rate the stock Buy with 55% upside potential

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Coinbase Global Inc. earned a rating boost from Bank of America this month. The firm upgraded shares to Buy from Neutral on January 8.

Coinbase Global, Inc., COIN

BofA set a $340 price target on the stock. This comes after Coinbase fell 40% from its July all-time high.

Analysts blamed crypto market turbulence for the drop. They found no fundamental weakness in the business itself.

The bank pointed to growing market opportunities ahead. Product launches have picked up speed in recent months.

Coinbase added stock and ETF trading to its platform. The company also moved into prediction markets.

These expansions support the “everything exchange” vision. Management wants to offer more than just crypto trading.

BofA sees potential for selling multiple products to current users. This cross-selling approach could boost future revenue.

Wall Street Remains Split

Barclays offered a contrasting opinion at the same time. The firm maintained its Equal Weight rating.

Barclays dropped its price target from $291 to $258. Analysts expect several challenges in Q4 results.

Trading volumes may come in lower than previous quarters. USDC stablecoin growth could decelerate.

Crypto price swings continue to pose risks. These factors might pressure near-term financial performance.

Fourth quarter earnings arrive in late February. That report will test competing analyst theses.

Business Performance Stays Strong

Third quarter numbers showed powerful growth. Revenue rose 55% from the prior year to $1.9 billion.

Adjusted EBITDA climbed 78.3% to $801 million. The business model continues evolving.

Subscription and service income hit 40% of total revenue. This reduces dependence on volatile trading fees.

Platform assets stood at $516 billion at quarter end. Institutional clients drove significant asset growth.

Stablecoins emerged as a key revenue engine. This category generated $355 million in Q3.

Regulatory Picture Brightens

The platform holds $15 billion in USDC balances. These deposits create interest income for Coinbase.

Payment use cases keep USDC on the platform longer. This generates more predictable revenue streams.

Coinbase acts as custodian for major Bitcoin and Ethereum ETFs. Growing ETF assets produce steady custody fees.

Regulatory conditions are improving for crypto businesses. U.S. lawmakers set hearings and votes for January 2026.

These proceedings will clarify digital asset regulations. Better rules could attract more institutional money.

The company filed disclosures for Europe’s MiCA rules. Coinbase is pursuing compliance across major markets.

Analyst consensus leans bullish on the stock. Roughly 65% of covering analysts recommend buying.

Price targets point to 55% potential gains. Most analysts see value despite recent volatility.

BofA believes the selloff created a buying chance. The firm thinks strong fundamentals justify higher prices.

New product launches keep coming at a fast pace. The everything exchange concept is becoming reality through feature additions.

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