Coinbase Shares Rally After JPMorgan Raises Rating and Price Target
Shares of Coinbase Global Inc. (COIN) surged on Friday following JPMorgan Chase�s decision to upgrade the stock. The bank shifted its rating from 'Neutral' to 'Overweight' and increased its price target to $404 per share, signaling about 15% upside from recent levels.
Analysts Highlight Base Network and USDC Monetization
JPMorgan analysts pointed to new monetization opportunities tied to Coinbase�s Base layer-2 blockchain and its evolving USDC rewards program. The report estimated that Base represents a $12 billion to $34 billion market opportunity. For Coinbase, its share could be valued between $4 billion and $12 billion if it retains a leading position. The bank noted that distribution of any Base-related token would likely focus on rewarding developers, validators, and the Base community.
Regarding USDC, JPMorgan suggested Coinbase could cut interest rewards for most users, instead offering them primarily to Coinbase One subscribers. This adjustment could boost Coinbase�s annual earnings by approximately $374 million at current yield rates.
Stock Performance and Earnings Outlook
After the upgrade, COIN shares climbed over 9% to reach around $353. The stock is up about 42% year-to-date, giving Coinbase a market capitalization of roughly $90.6 billion.
Coinbase is scheduled to report its third-quarter results on October 30. Analysts project the company will post earnings of $1.06 per share, a 71% increase year over year. Revenue for the quarter is expected to reach $1.74 billion, reflecting 44.1% year-over-year growth.
Shifts in Revenue Strategy and Regulatory Developments
In recent quarters, Coinbase has prioritized its subscription and services business, projected to bring in between $665 million and $745 million in Q3. This focus follows past operational milestones, including increased stablecoin balances and higher related revenue, although the company previously missed earnings expectations.
Coinbase also highlighted progress on the regulatory front. The company welcomed recent government approval of a law establishing a stablecoin framework and the House passage of a broader crypto market structure bill, both steps toward clearer regulation for the industry.
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