A Coinbase Global Inc. COIN analyst views the stock as a balanced risk/reward opportunity for investors and long-term growth winner in the cryptocurrency sector.
The Coinbase Analyst: Goldman Sachs analyst James Yaro gave Coinbase a Neutral rating and a $195 price target.
Analyst Will Nance previously covered the stock for Goldman Sachs. The most recent rating from Nance was Neutral with a $350 price target.
Read Also: Coinbase Q4 Earnings Highlights: Trading Platform Welcomes ‘Dawn Of A New Era For Crypto’
The Analyst Takeaways: With pure-play exposure to the cryptocurrency sector, Yaro sees long-term growth for Coinbase as the crypto ecosystem expands.
The analyst said Coinbase has a "balanced risk/reward."
Yaro highlights the company's exposure to retail and institutional trading along with a growing subscription and services business.
"We are cautiously optimistic on COIN, but see a balance of upside and downside risks," Yaro said.
Yaro highlights a positive regulatory environment for crypto that could support Coinbase's growth, but also be a negative.
"Longer-term, regulatory reform could increase the crypto TAM, but also bring in competitors from across financial services. Competition could pressure COIN's market share and pricing over time."
Yaro said a more positive regulatory environment could lead to more competitors, but could also lead to some not wanting to build out infrastructure and partnering with Coinbase instead.
The analyst said Coinbase trades close to the peer mean price-to-earnings ratio for brokerage exchanges and fintechs, which he believes is "fair value."
"Crypto ecosystem expansion likely drives asset and revenue growth across COIN's transactional and non-transactional crypto business, and we see sustainable adjusted profitability, even if crypto prices fall up to 50%."
Potential catalysts highlighted by the analyst include greater use of crypto as a store of value and greater use of crypto to facilitate commerce and payments.
The analyst said Coinbase's subscription and services businesses should grow over time, with stablecoins likely seeing future upside. The analyst's caution is that higher interest rates have helped subscription revenue, which could provide downside with lower interest rates.
COIN Price Action: Coinbase stock is down 1.13% to $187.60 on Thursday versus a 52-week trading range of $146.14 to $349.75. Coinbase stock is down 26% year-to-date in 2025.
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