Deutsche Bank initiates coverage of Coinbase with Buy rating, sees 40% upside to $340

Deutsche Bank has initiated coverage of Coinbase (COIN) with a Buy rating and a $340 price target, suggesting approximately 40% upside from current trading levels. This optimistic outlook is based on Coinbase's strategic shift toward becoming an "everything exchange," integrating assets like tokenized stocks and prediction markets, which are expected to expand addressable markets. Key growth drivers identified by the bank include derivatives, supported by the acquisition of Deribit and the rollout of CFTC-regulated perpetual futures, and recurring revenue from stablecoins and subscription services. While 2025 is seen as a heavy investment year, Deutsche Bank forecasts revenue growth outpacing expenses from 2026, leading to margin expansion and over 20% adjusted EBITDA growth next year. The bank believes the recent pullback in Coinbase shares undervalues its long-term earnings potential as product expansion accelerates.

(Source：The Block)