Bank of America Securities’ top analyst, Craig Siegenthaler, increased the price target for Coinbase Global (COIN) stock to $397 from $259, while maintaining the “Hold” rating. His revised price target reflects 12.3% upside potential from current levels. Coinbase stock has caught particular attention lately because of its ties to recently listed Circle Internet Group (CRCL). The two companies jointly launched the USDC stablecoin.
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Siegenthaler is a five-star analyst on TipRanks, ranking #114 out of the 9,653 analysts covered. He boasts a 63% success rate and an average return per rating of 17.40%.
Here’s Why BofA Raised the Price Target on COIN
Siegenthaler stated that Coinbase’s future potential received a boost because the rules for cryptocurrencies, particularly stablecoins, are becoming clearer with the passage of the GENIUS Act. Moreover, the analyst believes that Coinbase now looks more valuable due to its lucrative partnership with Circle Internet.
Both companies have an agreement to share interest income equally from USDC that is held outside of Coinbase’s own platform, while Coinbase keeps 100% of interest income from USDC held on its own platform. Circle’s initial public offering (IPO) has brought enhanced attention on this partnership and improved the outlook for Coinbase.
Accordingly, the top analyst increased the earnings estimates for Coinbase through 2027 and raised the stock’s valuation multiple to 42.5x from 30x. These increases resulted in a higher 12-month price target for Coinbase Global stock.
Nonetheless, the analyst maintains his Hold rating on COIN stock because he believes that retail trading (buying/selling) of cryptocurrencies could currently be at “peak-ish” (highest) levels. As a result, COIN stock has already priced in its full potential for now, keeping Siegenthaler on the sidelines.
Is Coinbase a Good Stock to Buy?
Wall Street remains divided on Coinbase’s long-term stock trajectory. On TipRanks, COIN stock has a Moderate Buy consensus rating based on 13 Buys and 11 Hold ratings. Also, the average Coinbase Global price target of $294.15 implies 16.8% downside potential from current levels. Year-to-date, COIN stock has gained 42.3%.
