Bernstein is calling out the market’s failure to properly value Coinbase, raising its target for the stock to $510, up from $310, in a report released Tuesday night.
Analyst Gautam Chhugani, who’s been covering the crypto market closely for a decade, maintained an “outperform” rating on the company and said that Wall Street is still misreading the full scale of what Coinbase actually is.
With the stock ending Tuesday’s trading session at $344.82, his new target implies a 48% upside. In the note, Gautam called Coinbase “the most misunderstood company in our Crypto coverage universe,” arguing that the broader market remains negative despite the company sitting at the center of every major revenue vertical in the industry.
He pointed out that Coinbase is the only crypto company in the S&P 500, dominates U.S. crypto trading, leads institutional participation, and operates the largest stablecoin business among exchanges. Gautam also reminded investors that Coinbase recently bought the largest crypto options exchange globally, and that it now powers the fastest and largest Ethereum-based chain used for tokenization.
Bernstein says Coinbase has more room to grow
Gautam pushed back against bearish takes that claim new competition will eat into Coinbase’s user base. He said Coinbase’s market share is still intact, and that incoming platforms from traditional brokerages won’t offer full product suites—something Coinbase already has.
That, he said, keeps them “less competitive.” He also flagged two U.S. bills in progress that could give Coinbase a leg up: the GENIUS Act, which would impose rules on stablecoins, and the CLARITY Act, designed to provide regulatory structure for crypto.
Beyond that, Gautam said the company’s move into crypto futures trading is a major opportunity. Coinbase already has Bitcoin and Ethereum futures available and is now preparing to launch perpetual futures, a product that sees heavy interest globally but has limited support in the U.S. market. He said this market has “massive headroom” and could bring in serious volumes once Coinbase gets fully up and running.
His updated price target is based on an internal estimate that Coinbase could generate around $9.5 billion in total revenue in 2025. That estimate factors in the broader spot and derivatives businesses, institutional activity, and potential upside from legislation.
After the report hit, Coinbase shares climbed 3.1% in premarket trading.
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