Bernstein Upgrades COIN: A Game-Changer in Crypto

In a striking move, Bernstein has elevated its price target for Coinbase (COIN) by an astounding 64%, skyrocketing it from $310 to a dazzling $510.

The research firm credits the meteoric rise in stablecoin popularity and Coinbase's stronghold within the institutional crypto space as pivotal factors driving this bullish outlook.

Coinbase's Meteoric Rise

On June 25th, Coinbase reached a remarkable six-month high of $369.28, marking an impressive increase of over 140% in the second quarter. This surge followed a robust endorsement from Bernstein, led by insightful analyst Gautam Chhugani.

Chhugani boldly proclaimed Coinbase as "the most misunderstood company" and likened it to the "Amazon of crypto financial services." This new perspective is changing the narrative surrounding COIN.

Underestimated Strength

Bernstein's analysts argue that Coinbase's capabilities have long been undervalued. It stands out as the sole crypto firm in the S&P 500 and boasts the largest stablecoin business among exchanges, contributing nearly 15% to its total revenue.

Furthermore, Coinbase dominates the institutional crypto sector, providing custody for 8 out of 11 Bitcoin ETF asset managers and recently acquiring Deribit, the largest global crypto options exchange.

Future Prospects Are Bright

The analysts believe that Coinbase is poised for massive gains thanks to upcoming legislation surrounding stablecoins. They emphasize the company's unmatched position in institutional crypto, bolstered by its custody services and the acquisition of the Deribit options exchange.

Moreover, Coinbase operates Base, an Ethereum layer 2 platform that is seen as a foundation for an institutional tokenization network, as evidenced by recent JPMorgan testing.

An Optimistic Valuation

Collectively, these factors contribute to Bernstein's projection of a double increase in earnings per share (EPS) over the next two years, justifying the ambitious $510 target.

They expect Coinbase's total revenue to soar to $9.5 billion by 2025 and $14.5 billion by 2026, fueled by surging trading and non-trading revenue streams, including staking and stablecoins.

Regarding EPS projections, they've adjusted their estimates to $11.26 for 2025, $17.92 for 2026, and $20.38 for 2027, reflecting substantial upward revisions.

What Lies Ahead for Coinbase?

Despite competitive pressures from Robinhood and traditional brokers, Bernstein believes these rivals are still "months away" from posing a threat. As of the latest updates, COIN's pre-market value stands at $357, indicating a potential 43% upside should the $510 target materialize.