Coinbase (COIN) just got a big vote of confidence from one of its former skeptics. H.C. Wainwright’s Mike Colonnese upgraded the crypto exchange’s stock to Buy from Sell, setting a new price target of $425, up from $300. The move indicates a sharp change in tone from the investment bank, which now sees renewed crypto momentum, stronger institutional demand, and a path toward U.S. regulatory progress.
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The firm made the call just before Coinbase reported its third-quarter earnings. Analysts said they now expect crypto prices and trading activity to stay strong through the end of the year, boosted by seasonal patterns and improving market sentiment.
Coinbase Delivers Better-Than-Expected Results
Coinbase’s latest earnings supported that optimism. The company reported $1.9 billion in total revenue, beating Wall Street’s $1.8 billion forecast. The jump came from higher trading volumes, a rebound in crypto prices, and ongoing strength in its subscription and services business, which continues to provide a steadier source of income beyond trading fees.
Despite the positive numbers, Coinbase stock slipped 0.6% in early trading to around $318.50. Investors appeared cautious after the stock’s recent run-up, but analysts said the underlying story looks much stronger than a few months ago.
Regulatory Progress Could Be the Next Big Catalyst
H.C. Wainwright believes that regulatory progress could unlock the next major leg higher for Coinbase. The analysts said they expect market structure legislation, a key step in defining crypto rules, to pass the U.S. Senate before year-end, even with delays from the government shutdown.
That, they argue, would reduce the cloud of uncertainty hanging over U.S. exchanges and open the door for more institutional adoption, which has been steadily increasing through ETF flows and custody services.
The analysts also noted that Coinbase’s acquisition of Deribit in August could help diversify its business and drive revenue growth in the coming quarters. They raised their 2025 outlook to $7.4 billion in total revenue, up from $7.1 billion, and boosted their earnings estimate to $4.99 per share.
Risks Are Still on the Horizon
Not everything is smooth sailing, though. The report highlighted several ongoing risks, including Coinbase’s dependence on retail trading, the volatile nature of crypto prices, and the uncertainty of regulation that can shift quickly with political changes.
Competition from both traditional financial players and new crypto exchanges also remains fierce. Still, H.C. Wainwright said Coinbase’s position as the most established U.S. crypto platform gives it an advantage once clearer rules are in place.
Is Coinbase a Good Share to Buy?
Wall Street’s outlook on Coinbase remains mostly positive. Out of 24 analysts tracked in the past three months, 15 rate the stock a Buy, eight suggest a Hold, and just one calls it a Sell. This gives Coinbase a “Moderate Buy” consensus.
The average 12-month COIN price target now sits at $388.82, implying a 9.10% upside from the current price.
