Goldman saw an "attractive entry point" in Coinbase. Its shares could gain 20%.
Goldman Sachs has raised its recommendation on Coinbase cryptocurrency exchange shares from "neutral" to "buy" and increased its target price for the company's shares from $294 to $303 over the next 12 months, CNBC reports. This implies growth potential of approximately 20% from current levels.
The crypto exchange's shares gained 6.3% in trading on January 5, but have lost nearly 13% over the past 12 months, while the S&P 500 index has risen 15% over the same period.
Goldman analyst James Yarow noted that Coinbase's recent market setbacks have created an "attractive entry point" for investors. He said that as Coinbase "transitions from cyclical growth to structural growth," the company's valuation should rise.
What Goldman Sachs sees as a driver of growth
Yaro noted that Coinbase's scale of business and high brand recognition enable the company to demonstrate above-average revenue growth. According to Yaro, Coinbase is getting extra support from recent new product launches, "which boost the company's competitiveness <...> and help it grow structurally." The analyst also sees further development of Coinbase's core business, as well as the company's expansion into crypto infrastructure.
In December 2025, Coinbase announced a major update to its product line that will give users access to the stock market and the prediction market.
"We view Coinbase's growing focus on crypto infrastructure businesses through subscriptions and services positively, which should reduce the volatility of the company's earnings over time," the analyst noted. According to his data, the share of these areas "grew from less than 5% of Coinbase's revenue to approximately 40% between 2020 and 2025." "We expect continued strong growth [in these businesses] — about 13% per year in 2025-2027 — as the crypto ecosystem expands beyond trading," Yaro added, noting that these areas are "less sensitive to cryptocurrency trading volumes and should support a reduction in the volatility of the company's profits."
Coinbase's subscriptions and services include asset storage services, stablecoin support, staking, and prime brokerage, Yar explained.
Context
From January to July 2025, Coinbase shares rose 52% amid the growth of cryptocurrencies, the adoption of The Genius Act in the US to regulate stablecoins, and the company's inclusion in the S&P 500 index, Barron's recalls. However, a correction began in August last year: on August 1, 2025, Coinbase shares plummeted 17% after the publication of its second-quarter report, which showed a 39% decline in the company's transaction revenue. The sell-off of Coinbase shares also took place against the backdrop of a fall in the price of Bitcoin in mid-December last year, Barron's recalls. As a result, Coinbase shares lost almost 13% in 2025.
What do other analysts say?
At the end of December 2025, Needham analyst lowered Coinbase's target share price from $400 to $290, while maintaining a "buy" recommendation. His assessment implies a share price increase of approximately 15% from current levels.
Of the 34 analysts covering crypto exchange stocks, 22 recommend buying them. 11 are neutral, and only one recommends selling.
This article was AI-translated and verified by a human editor
