‘Too cheap to sell here’: Bernstein sees 212% upside for Coinbase stock as annual trading volume hits $5.2 trillion

Bernstein analysts reaffirmed their bullish outlook on Coinbase (COIN), viewing the stock as "too cheap to sell" even after a recent price drop following Q4 results that missed estimates. They project a 212% upside, noting the stock trades at about 11 times its projected 2025 earnings (EV/2025 LTM) and possesses a strong balance sheet of $5.4 billion in net cash and digital assets. This optimism is supported by Coinbase's significant growth in trading activity, with total annual volume reaching $5.2 trillion in 2025, up over 150% year-over-year, driven partly by the Deribit acquisition and derivatives expansion, despite a sequential decline in consumer trading volume.

Financially, Coinbase reported $1.8 billion in revenue, a 5% sequential decline, and a net loss of $667 million, largely due to unrealized losses on its crypto portfolio. However, adjusted net income was $178 million. Bernstein highlighted Coinbase's strategic priorities for 2026, including becoming an "everything exchange" for crypto, derivatives, equities, and prediction markets, alongside scaling payments infrastructure and deepening DeFi integrations.

Bernstein reiterated its 'outperform' rating and $440 price target, concluding that Coinbase's diversified product roadmap, which now features 12 products exceeding $100 million in Annual Recurring Revenue (ARR), justifies their positive long-term view.

(Source：The Block)