In a recent report, Bernstein analyst Gautam Chhugani stated out his outperform rating on Coinbase and raised his price target from $310 to $510.
This new target points to a 48% gain from Tuesday’s close at $344.82. The report argues that the market still underestimates Coinbase’s full potential despite its central role in the crypto industry.
Analyst’s Bullish Case
Chhugani, who has covered crypto markets for ten years, called Coinbase the most misunderstood company in his coverage universe.
He noted that despite negative sentiment, Coinbase sits at the heart of every major revenue stream in digital assets. The stock’s 5.37% rise in the past 24 hours underscores renewed investor interest.
Market Leadership and Scale
He also noted that Coinbase stands out as the only crypto firm in the S&P 500 and leads U.S. trading volumes.
It also runs the largest stablecoin business among exchanges and dominates institutional crypto services. The exchange’s recent purchase of the largest global crypto options platform further strengthens its market position.
Blockchain Infrastructure Growth
Beyond trading, Coinbase powers the fastest and largest Ethereum-based chain used for tokenization. Chhugani argues that this infrastructure edge will help Coinbase capture more business from developers and projects building on Ethereum.
He believes rivals will struggle to match this combination of trading scale and blockchain services.
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Expanding Derivatives Offerings
The report highlights the growing market for cryptocurrency derivatives as another upside driver. Coinbase already offers Bitcoin and Ethereum futures and plans to launch perpetual futures trading. Chhugani sees this U.S market as having massive headroom and believes Coinbase is well placed to capture a large share.
Coinbase CEO Brian Armstrong took to X(Twitter) today to highlight the company’s work with around 200 banks, brokerages, fintechs and payment firms.
He invited other institutions to explore crypto integrations through Coinbase’s infrastructure. This push into traditional finance channels could add meaningful revenue and reinforce Coinbase’s reputation as a partner of choice.
European Expansion and Licensing
In parallel with these developments, Coinbase won a Markets in Crypto Assets licence from Luxembourg’s financial regulator.
The company will move its regional headquarters from Ireland to Luxembourg, making it the first U.S. exchange to hold this licence. This step opens the door to a wider range of European services under clear local regulations.
With a nearly 50% implied upside in Bernstein’s updated target, Coinbase’s shares may be set for a significant breakout. The stock’s recent gains reflect growing confidence in its diversified business model.
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