Bernstein named «most misunderstood» crypto stock with 50% upside potential
That company's share has remained stable even as new competitors have emerged, the analyst said
Analyst Bernstein has sharply raised his target price on cryptocurrency exchange Coinbase's stock and now sees the potential for it to rise by nearly 50% more. According to Bernstein, Coinbase remains Wall Street's most undervalued crypto stock. In trading on Wednesday, the company's quotes hit a high in more than four years, and over the past four trading sessions have risen by more than 35% thanks to the hype around stablecoins - the analog of the U.S. dollar in the crypto market.
Details
Bernstein analyst Gautam Chhugani raised his target price on Coinbase shares from $310 immediately to $510, reiterating an Outperform rating («above market,» equivalent to a buy advice), CNBC reports. Chhugani's new target implies a potential 48% upside to the company's stock price from its June 24 closing level. «Coinbase is the most misunderstood [by analysts] cryptocurrency company among those we cover. Despite multiple growth drivers, Wall Street continues to undervalue the largest universal cryptocurrency bank,» Chhugani said in a note quoted by CNBC.
According to Bernstein, Coinbase has several important advantages: it is the only crypto company in the S&P 500 index; it dominates the U.S. crypto trading market; operates the largest stablecoin business among exchanges - cryptocurrencies whose exchange rate is pegged to the U.S. dollar; leads the institutional cryptosphere; has acquired the world's largest cryptocurrency options exchange; and is developing the fastest blockchain based on Ethereum, the second largest cryptocurrency.
Coinbase continues to dispel analysts' skepticism - its market share remains stable despite the emergence of new players, Chhugani said. According to him, even if large brokerage companies enter the market with their own crypto services - they will not be able to seriously compete with Coinbase, because they are unlikely to be able to immediately offer the same wide range of services. The company could also benefit from pending legislative initiatives - in particular, thebills GENIUS, which would establish uniform rules for the stablecoin market, and CLARITY, designed to bring more certainty to the regulation of digital assets.
In addition, Coinbase is facing an even bigger prospect - the futures market, the analyst points out. He estimates the potential of crypto derivatives in the United States as «huge». After the launch of bitcoin and Ethereum futures trading, the company is preparing to bring open-ended futures contracts to the market.
Bernstein estimates that Coinbase's total revenue this year will be about $9.5 billion, a 45% increase relative to 2024.
What about the stock
In trading on June 25, Coinbasequotes jumped by 7.2% to $369.2. That became their highest since April 2021, but then they lost half of what they had gained. The previous trading session
Coinbase closed up 12.2%, leading the S&P 500 index higher, notes MarketWatch. In just the past four trading sessions, the company's market value has increased by more than 35% after the cryptocurrency exchange introduced Coinbase Payments, a new infrastructure for stackablecoin payments. The GENIUS bill, which won approval in the Senate last week, was another growth driver.
Since the beginning of 2025, Coinbase's capitalization has soared by almost 45%. For comparison, the main US stock index S&P 500 for the same period added about 4%.
What others are saying
Coinbasereceived another target price hike on Monday - from analyst Benchmark, which raised it from $301 to $421 and reiterated a «buy» advice. Benchmark sees 2025 as a «transformational year» for Coinbase and also notes the prospects that the passage of the Stablecoin Regulation Bill will bring. According to the analyst, stablecoins are a «key segment of the company's business.» An improved regulatory environment and Coinbase's own proactive steps to capitalize on these changes will support long-term growth in the company's stock price, Benchmark believes.
Nevertheless, most on Wall Street are cautious about Coinbase shares. Among the 37 analysts who assigned ratings to the crypto exchange's stock, 18 are neutral (Hold), 17 advise buying (Buy and Overweight ratings), and the remaining two advise selling (Underweight and Sell). Wall Street's consensus target price is $279.5 - down nearly 19% from the last close.
This article was AI-translated and verified by a human editor
