Coinbase (COIN) Stock May See a Sharp Increase in Value, Says Bernstein

Bernstein believes that Coinbase (COIN), a well-known cryptocurrency exchange in the US, may see a sharp increase in the value of its stock.

The recent report from asset management company Bernstein provides a deep dive into Coinbase (NASDAQ:COIN) and the potential for a substantial increase in the value of its stock.

As the well-known cryptocurrency exchange in the US, Coinbase is expected to benefit from the Trump administration’s policies, which are likely to be more favorable towards crypto.

According to Gautam Chhugani, managing director of global digital assets at Bernstein, Coinbase’s stock price could experience a significant surge of 72% from its current levels.

Currently, the asset management company’s price objective for Coinbase is set at $180, but Chhugani anticipates this to rise to $310 per share.

Furthermore, Bernstein has assigned Coinbase an “outperform” rating. This rating is a key indicator of the company’s confidence in Coinbase’s potential to perform better than the market average and to thrive in a more supportive regulatory environment.

Coinbase Poised to Lead in a Pro-Crypto Environment

President Donald Trump’s administration is aiming to position the US as the “crypto capital of the world,” an environment that could be less tolerant of crypto activity.

Highlighting Coinbase’s dominant position in the market, Chhugani noted that the exchange controls a 66% share of the US market.

“With the Trump Administration’s aspiration to make America the ‘crypto capital of the world,’ Coinbase remains the dominant platform (66% US market share) to ride the tailwinds.”

However, regulatory clarity could also encourage competition from fintech firms, brokers, banks, and other financial service providers, an aspect that the asset management company acknowledges.

Despite this, Chhugani remains optimistic about Coinbase’s ability to retain its leadership. He suggests that a growing crypto market in the US will ultimately benefit the platform.

“Regulatory clarity brings more competition for COIN from fintechs, brokers, banks, etc. However, we expect a strong bull market and rising US onshore dominance to more than offset any competitive market share and pricing pressures.”

In terms of revenue potential, Chhugani anticipates a 31% compound annual growth rate for Coinbase’s non-trading revenue.

This optimism stems from the exchange’s strategic expansion into crypto financial services, particularly its dominance in USD stablecoins and services like staking.

“COIN has done well to build a suite of crypto financial services beyond trading, particularly market leading share in USD stablecoins, crypto yield services such as staking.”