Benchmark Launches Coverage on Coinbase With Buy Rating, Sees Significant Upside

Investment firm Benchmark has initiated coverage on Coinbase (COIN) with a buy rating and a price target of $252, citing the company’s dominant position in the U.S. crypto market and its expanding suite of products.

In its report released Wednesday, Benchmark highlighted Coinbase’s role as the most scalable crypto trading platform in the country, commanding an estimated 66% domestic market share. The stock responded with a more than 4% gain, trading around $198 in early market activity.

Analyst Mark Palmer praised the exchange for offering a “comprehensive suite of products and services” that support the adoption of digital assets among both retail and institutional clients.

Palmer also noted that Coinbase shares have dropped nearly 50% since December, a slide that he believes is out of sync with the improving outlook for the crypto space. “The current valuation fails to reflect the accelerating momentum within the industry,” the report said.

Benchmark believes that regulatory developments in the U.S., particularly around stablecoins, could act as a powerful catalyst for Coinbase. The company is a key player in the stablecoin ecosystem through its involvement with USD Coin (USDC).

Earlier this month, momentum on that front appeared to build as a House committee advanced a stablecoin bill, aligning with efforts in the Senate and signaling a move closer to formal regulation.

“With meaningful digital asset legislation likely to be enacted in the coming months, we expect to see a surge in institutional demand for crypto,” Palmer wrote.

Additionally, the firm pointed to Coinbase’s diversified revenue streams, especially its non-trading businesses, including subscriptions and services, which are growing at a faster pace than trading volumes—a promising sign for future profitability.