Coinbase Stock Upgraded as Digital Assets Gain Financial Integration

NEW YORK, NY — Coinbase, a leading cryptocurrency exchange, is expected to outperform as digital currencies become more integrated into financial services. Rothschild & Co. Redburn upgraded Coinbase from neutral to buy, raising its price target from $325 to $417, signaling a potential upside of 12.1% based on recent closing prices.

Nicholas Watts, an analyst at Rothschild & Co., noted the significant opportunities and risks in the evolving digital asset landscape. He described Coinbase as a “well-balanced play on broader digital asset adoption.” Watts highlighted strong trading volumes and a growing token market capitalization as key factors supporting the expected growth of Coinbase’s stock.

Institutional interest in cryptocurrencies has increased, particularly after the U.S. Securities and Exchange Commission approved spot Bitcoin and ether ETFs in 2024. Watts anticipates continued growth in institutional interest, real-world use cases, and high levels of retail investor engagement.

Despite competition in the crypto retail trading space, Watts believes Coinbase will retain its lead over other centralized exchanges. He pointed out that Coinbase’s retail take rate has averaged around 1.5%, which has surprised the market.

Rothschild’s upbeat outlook for Coinbase aligns with the broader sentiment on Wall Street. Out of 36 analysts covering Coinbase, 18 hold buy or strong buy ratings, while 15 recommend holding the stock, according to LSEG data. Following the news, Coinbase shares rose approximately 0.5% in premarket trading on Friday, contributing to an impressive 128% increase in the stock over the past year.