Analyst: Coinbase is dubbed the "one-stop financial Amazon" with a target price aimed at $510
Coinbase's stock price reached a new 52-week high on Wednesday, with Bernstein analysts raising its target price to $510 and upgrading the rating to "outperform." The analysts referred to Coinbase as the "one-stop Amazon" in the cryptocurrency finance sector, highlighting its dominant position in the U.S. cryptocurrency market and the expansion of its emerging businesses. Recent favorable policies have boosted the stock price, which has increased by over 40% since the passage of the "GENIUS Act."
According to Zhitong Finance APP, Coinbase (COIN.US) stock price reached a new 52-week high during trading on Wednesday, with Bernstein's analyst team positioning it as the "one-stop Amazon of the crypto finance sector." By the end of the day, the stock had risen over 3%, just a step away from the historical closing price of $357.39 set on November 9, 2021. This stock price movement was driven by Bernstein's significant upward revision of the target price, with analyst Gautam Chhugani's team raising the rating directly to "outperform" and increasing the target price from $310 to $510, emphasizing that "Coinbase is the most undervalued asset in the crypto industry."
The research report pointed out that as the only crypto concept stock in the S&P 500 index, Coinbase has built a unique competitive advantage: it not only dominates the U.S. crypto trading market but also operates the largest stablecoin business in the industry and exclusively undertakes the custody function for the underlying assets of the first batch of spot Bitcoin ETFs in the U.S. Chhugani specifically mentioned that the company has transformed from a single trading platform into "the Amazon of crypto financial services" through emerging businesses such as institutional custody, Base blockchain services, and Prime lending platform, with a business scope far exceeding traditional trading.
In response to market concerns about competitive risks, the analyst team believes that the bearish logic has yet to materialize: "Despite facing challenges from new entrants, Coinbase's core market share remains solid, and traditional brokerages will require several months of preparation to enter the crypto space, which is considered 'eternal' in the rapidly changing crypto industry." Coinbase co-founder Brian Armstrong also corroborated this view on social media, revealing that the company is providing crypto service integration support for nearly 200 financial institutions.
Recent favorable policies have become a catalyst for the stock price. Since the Senate passed the GENIUS Act to establish a federal regulatory framework for stablecoins, Coinbase's stock price has risen over 40%. Fundstrat's head of digital asset strategy, Sean Farrell, pointed out that even after this round of increases, there is still upside potential for the stock.
From an industry perspective, as institutions accelerate their layout in Bitcoin and stablecoin regulation becomes clearer, Circle (CRCL.US) has seen its stock price soar 600% since going public via a reverse merger on June 5, Robinhood (HOOD.US) has risen 126% this year, and MicroStrategy, the publicly listed company with the most Bitcoin holdings, recorded a 32% increase during the same period, confirming the overall trend of valuation reconstruction in the crypto industry
