Coinbase Shares Have Potential for Almost 30% Upside, Analyst Says

JMP Securities initiates its coverage of COIN with a market outperform rating.

AccessTimeIconSep 28, 2021 at 7:17 p.m. UTC
Updated May 11, 2023 at 4:07 p.m. UTC

Coinbase shares may reach $300, representing an almost 30% upside from their current price, according to a new research report from JMP Securities, which rates the crypto exchange at market outperform.

“With the company just scratching the surface of its long-term potential, in what we view as a rapidly growing and evolving addressable market, we see a compelling value proposition in COIN shares,” JMP analyst Devin Ryan wrote in a note.

Coinbase has a competitive advantage as a “first mover” in the crypto industry, and even with 68 million users, the company has reached only a small portion of its long-term addressable market, according to the report.

Ryan wrote:

“While we do not expect COIN shares to move in a straight line, we see material upside that compensates for the inherent risk, and with the stock trading at just 6.0x EV/2023E revenue (compared to a number of other high-growth, leading brand FinTechs trading closer to ~10x and above), we believe the risk/reward in shares is compelling, with additional optionality to the upside as the business model iterates into new areas that the market is currently not even contemplating.”

Earlier this month, Piper Sandler analyst Richard Repetto defended Coinbase after a sell-off in the shares following news that it had received a Wells notice from the U.S. Securities and Exchange Commission (SEC) concerning a potential lending product that was subsequently scrapped.

Coinbase shares have fallen about 7% since the exchange’s direct listing in April.


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Josh Fineman is CoinDesk's Senior Wall Street Reporter, covering the intersection of crypto and traditional finance.

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