Coinbase price target raised to $397 from $259 at BofA

BofA analyst Craig Siegenthaler raised the firm’s price target on Coinbase (COIN) to $397 from $259 and keeps a Neutral rating on the shares. The firm increased earnings estimates through 2027 as well as the stock’s multiple to 42.5-times from 30-times. The positive revision embeds the benefit of greater regulatory clarity for crypto, the analyst tells investors in a research note. Bofa says its stock multiple increase reflects the “value unlock” of Coinbase’s economic interest in USDC. The company splits the economics of off-platform USDC 50/50 with its strategic partner Circle Internet (CRCL), and Circle’s recent public float has helped investors mark-to-market the value of this relationship, contends the firm. However, BofA keeps a Neutral rating on Coinbase, noting the retail trading backdrop is “peak-ish” and the stock’s valuation is full.