Wall Street bank JPMorgan (JPM) upgraded Coinbase (COIN) to “overweight” from “neutral” and raised its price target to $404, citing new monetization opportunities and lower risks that make the crypto exchange more attractive than its peers.
Shares were about 4% higher, at around $332, in early trading.
The bank highlighted two key catalysts: a potential base token and improved USDC payments.
JPMorgan analysts said Coinbase is exploring a token for Base, its Layer 2 blockchain set to launch in August 2023, becoming one of the largest in the ecosystem.
A token could allow Coinbase to capture more of Base’s growth, with the bank estimating a potential $12 billion to $34 billion market cap and valuing Coinbase at up to $12 billion. The move could boost growth, community participation and long-term infrastructure development, JPMorgan said.
Analysts at the bank also noted Coinbase’s efforts to better monetize USDC by offering benefits to customers through the Coinbase One subscription service. JPMorgan said that by divesting users and offering 4% returns to clients, Coinbase could add about $1 per share to annual earnings.
Although competition from decentralized exchanges (DEXs) remains a risk, analysts said the market share between DEXs and centralized exchanges has stabilized. It says Coinbase’s integrated model spanning brokerage, market making, exchange and custody should help it maintain profitability even as fees decline.
JPMorgan values Coinbase at 50 times expected 2027 earnings, taking into account $4 billion from a potential Base token, and sets a December 2026 price target of $404.
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