Bernstein Maintains Bullish Coinbase Call, Citing Product Expansion and Strong Fundamentals

Wall Street firm Bernstein is holding its most aggressive call on Coinbase (COIN), reiterating an outperform rating and a $510 price target, even as recent crypto volatility and a market pullback have shaken sentiment across crypto-linked equities.

In a Monday note led by analyst Gautam Chhugani, Bernstein described the current environment as “fragile,” with choppy crypto price action spilling into public-market proxies. However, the firm argued that this downturn differs from prior crypto busts because underlying businesses appear resilient, and speculative excess is concentrated in smaller “MSTR copycat” plays, while larger, established firms are evolving more sustainably.

For Coinbase, this evolution underpins the bullish thesis. The analysts highlighted the company’s effort to reduce reliance on spot trading, aiming to become an “everything exchange”—a full-stack financial platform rather than a single-product crypto venue. Stablecoins already contribute meaningfully to revenue, yet investors often continue to view ancillary products such as staking and custody as mere crypto beta.

Bernstein emphasized that clearer U.S. regulatory guidance could re-rate these revenue streams, accelerate Coinbase’s expansion, and narrow the edge historically enjoyed by offshore rivals that list tokens faster and capture related fundraising fees.

The firm also pointed to Coinbase’s push into token issuance through a launchpad model, which could generate success fees while creating a flywheel effect: more issuances drive more listings, ultimately boosting trading volume. Bernstein cited Monad’s listing as evidence of strong demand for this approach.

Near-term catalysts include Coinbase’s Dec. 17 product showcase, which is expected to spotlight offerings beyond spot trading, including tokenized equities and prediction markets. Additionally, the company’s expansion into derivatives, supported by Deribit, could position Coinbase increasingly like broker-dealers such as Robinhood (HOOD), with both platforms converging as they add complementary products.

On the consumer side, Bernstein highlighted Coinbase’s Base app as a potential on-ramp combining wallet functionality, payments, social features, and broader token access via on-chain integrations.

Overall, Bernstein framed Coinbase’s strategy as a pivot from a spot-driven exchange to a broader distribution and services platform, one capable of compounding through regulatory clarity, new token issuances, and a growing product suite, even as near-term sentiment remains tethered to crypto volatility.

At publication, Coinbase shares were up 3.7% at $269.42, implying nearly 90% upside to Bernstein’s $510 price target.