Investment firm Argus Research has downgraded Coinbase Global (COIN) from a Buy to Hold rating without a price target. This is due to growing concerns over the crypto exchange’s rising expenses and its high valuation. Although Coinbase reported strong third-quarter results that included a rebound in trading volume, four-star analyst Kevin Heal pointed out that the company continues to spend heavily on research, development, and acquisitions. These investments are expected to drive up costs in the near future.
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When it comes to valuation, Heal noted that Coinbase is currently trading at 39 times his updated 2026 earnings-per-share estimate, which is significantly higher than the 24x–27x range of other major exchanges. However, he said that the firm would consider upgrading the stock again once its valuation becomes more aligned with industry peers.
Heal also questioned whether investors will remain committed to crypto trading given the ongoing market volatility. This suggests that some traders may begin to pull back. Nonetheless, he noted that new U.S. crypto legislation could help drive future transaction growth and potentially offset some of the uncertainty surrounding the wider crypto landscape.
Is COIN a Good Buy Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on Coinbase stock based on 15 Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average COIN price target of $396.30 per share implies 59.6% upside potential.
