‘This Is Remarkable,’ Says Mark Palmer About Coinbase Stock

Coinbase (NASDAQ:COIN) shares have been on a tear recently, gaining ~70% over the past three months and moving within striking distance of their all-time high of $357.39, set on November 9, 2021.

Much of the recent momentum stems from two key regulatory breakthroughs. First, the U.S. Senate passed the bipartisan GENIUS Act, which aims to establish a legal framework for stablecoins. Second, Coinbase secured a Markets in Crypto Assets (MiCA) license, granting it the ability to offer crypto trading, custody, staking, and payment services across all 27 EU countries, along with Iceland, Liechtenstein, and Norway.

Building on that regulatory tailwind, Coinbase also rolled out several strategic initiatives that have further bolstered sentiment. Most importantly, it launched Coinbase Payments to facilitate USDC stablecoin transactions, a move that directly aligns with the GENIUS Act’s framework and opens up a scalable new revenue stream beyond trading volumes. At the same time, the company is pushing to use USDC as collateral for U.S. futures trading through a partnership with Nodal Clear, potentially marking the first use of stablecoins as collateral in a regulated U.S. futures market.

Not mincing his words here, Benchmark analyst Mark Palmer claims the ongoing positive news flow is nothing short of “remarkable.” 

Palmer sees even more upside on the horizon. The analyst believes Coinbase’s position as the leading U.S. crypto platform puts it in a prime spot to benefit from the recently introduced CLARITY Act in the House. The bill aims to create a comprehensive regulatory framework for digital assets, a move Palmer views as essential for unlocking broader institutional participation.

Among the biggest potential winners from this legislative clarity is Coinbase’s staking service. Palmer points out that the bill’s initial draft states staking is not a securities offering, a crucial distinction that could spark a “sizeable increase” in institutional interest, thanks to the yield it provides.

Taken together, these regulatory advances and Coinbase’s proactive moves to capitalize on them have prompted Palmer to revisit his valuation model.

“We believe the combination of an improving operating environment for COIN due to legislative and regulatory actions supportive of its growth prospects and the company’s initiatives aimed at taking full advantage of those changes merits a higher earnings multiple for its stock,” the analyst said.

Reflecting this bullish outlook, Palmer raised his price target on COIN from $301 to $421, suggesting a potential 22% upside. His rating on the stock remains a Buy.

Amongst Palmer’s colleagues, 12 other analysts join him in the bull camp and with an additional 11 Holds, the stock claims a Moderate Buy consensus rating. However, the average price target suggests the shares have overshot themselves; at $274.15, the figure factors in a 12-month slide of ~23%. it will be interesting to see if analysts raise their price targets or downgrade their ratings shortly. (See COIN stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.