Coinbase shares could rise by a third, Citigroup believes. What will support the growth?

Citigroup has almost doubled the target price of shares of crypto exchange Coinbase. The new target suggests that these securities have the potential to grow by about a third - by promoting the regulation of cryptocurrencies, expanding the product line and the integration of stablecoins. The bank analyst notes that the company is benefiting from growing interest in digital assets and new services, such as a joint card with American Express and other payment solutions, which could support user and revenue growth.

Citigroup analyst Peter Christiansen reiterated a "buy" recommendation on shares of crypto exchange Coinbase and raised his target price by 87% from $270 to $505, wrote CNBC. The new benchmark suggests a potential upside of about 33%.

Christiansen said the company could benefit from progress on legislative initiatives, as well as rising bitcoin prices and increased revenue from custodial services - that is, fees for storing and protecting customers' digital assets.

Quotes Coinbase at the auction on July 29 fell by 2.5% - to $369, which was their minimum for more than a week. The company's value is declining for the sixth consecutive trading session, having lost almost 14% relative to the historic high of $419.78 reached on July 18. Since the beginning of the year, the crypto exchange's securities have risen by about 52% - largely due to the Trump administration's favorable attitude to digital currencies and the entire financial ecosystem around them.

On July 31, it will release quarterly results. 

A Citi analyst noted the company's "leadership in the coming era of cryptocurrency regulation." "Coinbase has had some positive momentum recently, including: signing of the GENIUS Stablecoin Act, House passage of the CLARITY bill on crypto market structure, and inclusion of the company in the S&P 500 Index [in May]. We also believe that investors are beginning to place particular value on blockchain innovations that are applicable to real-world applications,"  Christiansen wrote in the report.

He explained that the new targeting is driven by a 40-45% quarterly increase in cryptocurrency prices and improved profitability of Coinbase's services. He expects the integration of the USDC steiblcoin and product launches - such as a partner card with American Express or new features for accepting payments through Coinbase Payments - to drive growth for Coinbase One's subscription service. 

Separately, the analyst noted the growth potential of the company's shares due to the launch of futures and options trading on the platform.

The day before, on July 28, Monness Crespi Hardt analyst Gus Gala rejected a recommendation to buy shares of crypto exchange Coinbase, downgrading its rating from Buy to Neutral and also withdrawing its target price.  "It's time to lock in profits," he noted, saying the company's market value has risen too much over the past couple of months - even with positive regulatory news in the crypto sector and the rise in the price of bitcoin.

Of the 38 analysts who gave ratings to Coinbase securities, exactly half of them are neutral and advise holding previously purchased shares in the portfolio (Hold rating). 16 recommend investors buy (Buy and Overweight ratings), and three recommend investors sell (Underweight and Sell). The Wall Street consensus price target of $369 implies a nearly 3% drop in the company's market value.

This article was AI-translated and verified by a human editor