Coinbase stock surges after JPMorgan upgrade on Base, USDC potential
JPMorgan upgraded Coinbase stock to "Overweight," citing significant monetization potential from its Base network and USDC rewards overhaul.Summary
Coinbase Global Inc. (COIN) shares rallied sharply after JPMorgan Chase upgraded the stock to “Overweight” from “Neutral,” raising the price target to $404, suggesting about 15% upside. JPMorgan analysts believe Coinbase is maximizing value from its Base layer-2 blockchain, estimating that a potential Base token launch could represent a $12 billion to $34 billion market opportunity, with Coinbase retaining $4 billion to $12 billion. Furthermore, the bank noted margin expansion potential from changes to the USDC rewards program, potentially adding $374 million in annual earnings by prioritizing rewards for Coinbase One subscribers. Following the upgrade, COIN shares surged over 9% on Friday. Coinbase is scheduled to report third-quarter results on October 30, with analysts expecting earnings of $1.06 per share on $1.74 billion in revenue.
(Source：Cointelegraph)