Goldman upgrades Coinbase stock to Buy, flags execution risks and growing competition

Goldman Sachs upgraded Coinbase (COIN) stock from Neutral to Buy, setting a $303 price target, based on an improved long-term growth profile driven by recent product launches and a growing mix of infrastructure revenue like custody and staking, which now account for about 40% of revenue.

Despite this constructive view, Goldman remains selectively optimistic about the sector overall, noting that near-term margins face pressure from intensifying competition, sensitivity to interest rates, and rising customer acquisition costs as traditional brokers enter crypto.

The upgrade also reflects Coinbase's expansion into new verticals like U.S. equities and prediction markets, which Goldman sees as potentially large markets, though success depends on scale and liquidity. The bank's longer-term upside case is contingent on regulatory clarity, specifically the passage of a U.S. crypto market structure bill.

(Source：The Block)