BofA raises Coinbase stock price target on stablecoin revenue outlook

BofA Securities has increased its price target for Coinbase shares to $203, up from $174, while retaining a Buy rating on the cryptocurrency exchange operator. The stock is currently trading at $183, marking a 52% decline over the past year. The firm has also raised its 2027 and 2028 earnings per share estimates for Coinbase to $3.46 and $6.76, respectively, reflecting optimism about stablecoin revenues following the Federal Reserve's September rate hike.

However, the firm lowered its third-quarter 2026 and full-year 2026 EPS estimates to -$0.24 and -$0.73, due to lower trading volumes. In the third quarter of 2026, crypto industry spot volumes totaled $2.4 trillion, with $142 billion coming from Coinbase, down from $2.6 trillion and $144 billion in the second quarter. The $203 price target is based on a valuation multiple of 30 times the firm's 2028 earnings per share estimate, maintaining the previous methodology.

Coinbase has been in the news recently, with changes to its Advanced trading platform, reduced fees for active traders, and the potential for instant VIP tier qualification by holding USDC. Analysts Mizuho and Baird have maintained Neutral ratings on Coinbase, citing fee cuts and regulatory developments, respectively, while awaiting the potential impact of the SEC's Innovation Exemption and the CLARITY Act.