Coinbase Lands Back-to-Back ‘Buy’ Ratings as Wall Street Bets on Crypto Exchange’s Transformation
This week, Coinbase Global Inc. (NASDAQ: COIN) got its second big vote of confidence. Bank of America raised its rating of the crypto
Quick overview
- Bank of America upgraded Coinbase's rating to 'buy', following a similar upgrade from Goldman Sachs.
- BofA set a price target of $340 for Coinbase shares, indicating a potential 38% increase from current levels.
- Coinbase is diversifying its offerings beyond cryptocurrency trading, aiming to become a comprehensive financial hub.
- While there are risks from increased competition and market volatility, institutional confidence in Coinbase's growth strategy is rising.
This week, Coinbase Global Inc. (NASDAQ: COIN) got its second big vote of confidence. Bank of America raised its rating of the cryptocurrency exchange to “buy” on Thursday, just days after Goldman Sachs gave it the same rating. Even though the stock is down 40% from its July 2021 highs, analysts say that the recent dip has made it a good time for investors to buy.
BofA assigned a price objective of $340 for Coinbase shares, which means that they could go up by 38% from their current level of about $245. The upgrade is based on the growing belief that Coinbase is successfully making the switch from a platform that only trades cryptocurrencies to what BofA analyst Craig Siegenthaler called a “everything exchange.” This means that it will be a full financial hub that lets you buy and sell stocks, cryptocurrencies, make peer-to-peer payments, and bet on the future all in one app.
Coinbase (COIN) Stock Technical and Fundamental Analysis
From a technical point of view, COIN shares have been very volatile over the past year, ranging between $151.80 and $419.80, a 176.6% spread that shows how sensitive the company is to changes in the crypto market. The shares have dropped 5.6% in the last year and are now trading around $245.
BofA’s optimistic thesis is based on a number of events that could lead to a change. First, the amount of short interest in COIN has approximately doubled from last year to this year. If sentiment improves, this might lead to a short squeeze. Second, the tax-loss harvesting pressure that hurt the stock in late Q4 2025 seems to be diminishing, which could get rid of a technical overhang.
BofA says that the valuation has become “significantly cheaper” since the drop, even if Coinbase’s product velocity has increased and its entire addressable market has grown. The bank’s investment argument is based on this divergence between price activity and fundamental progress.
Coinbase’s Strategic Diversification Gains Traction
Wall Street likes that Coinbase is moving beyond only trading cryptocurrencies. At a product showcase in December, the company announced plans for 24/5 stock and ETF trading that would include S&P 500 stocks, equities perpetuals for international markets starting in 2026, and Kalshi integration for prediction markets. Coinbase said this week that copper and platinum futures will be available on the platform starting January 26.
These steps are meant to make Coinbase less reliant on crypto trading volumes, which are still very closely linked to changes in the price of Bitcoin. Base, Coinbase’s Ethereum Layer-2 network, and derivatives trading are starting to look like they could help protect against volatility in retail trade.
BofA analysts were especially hopeful about a possible native coin for Base, saying that such a launch might bring in billions of dollars and encourage developers and early adopters. The bank also pointed up Coinbase Tokenize, a platform that lets you put real-world assets like private equity and real estate on the blockchain, as a big long-term chance.
Risks and Catalysts
BofA was optimistic about Coinbase’s change, but they also saw big dangers. If Binance comes back to the U.S. market, it might make competition stronger, and more declines in crypto prices could hurt short-term finances. Goldman Sachs also said that execution risk and interest-rate sensitivity would be problems in 2026.
On the plus side, President Donald Trump’s pro-crypto position, which will last for three more years, gives the industry a helpful regulatory environment. BofA said that Coinbase is “the trusted platform with #1 market share in the U.S.,” which makes it a great partner for traditional financial institutions that want to get into crypto.
The fact that two big Wall Street firms have upgraded Coinbase back-to-back shows that more and more institutions believe that Coinbase is successfully developing beyond its crypto-native roots into a platform for a wide range of financial services that is built for the onchain economy.
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