Deutsche Bank Sees 40% Upside for Coinbase with $340 Price Target

TLDR

• Deutsche Bank sees Coinbase’s growth driven by derivatives and tokenized equities.
• Coinbase aims to expand into a broader “everything exchange” with diverse assets.
• Acquisition of Deribit strengthens Coinbase’s position in crypto derivatives.
• Deutsche Bank expects 20% adjusted EBITDA growth for Coinbase by 2026.

Deutsche Bank has initiated coverage of Coinbase with a Buy rating and a price target of $340, signaling a potential 40% upside. This bullish outlook is rooted in Coinbase’s strategic shift toward becoming an “everything exchange,” incorporating tokenized stocks and prediction markets. The bank believes that these innovations, along with growing derivatives and stablecoin revenues, will drive significant long-term growth, making Coinbase an attractive investment opportunity despite recent stock declines.

Deutsche Bank’s Positive Outlook on Coinbase

Deutsche Bank has initiated coverage of Coinbase (COIN) with a Buy rating and a price target of $340, indicating a potential upside of around 40% from its current trading levels. The bank’s optimistic outlook is driven by the company’s shift toward becoming an “everything exchange.” This strategy includes the integration of various assets, including tokenized stocks and prediction markets. These changes are expected to broaden Coinbase’s addressable market and contribute to future revenue growth.

The Buy rating reflects Deutsche Bank’s belief that Coinbase is well-positioned for substantial expansion. The bank’s analysts suggest that the company’s shift beyond its current focus on cryptocurrency spot trading could lead to a more diversified revenue stream. Product launches such as tokenized equities and prediction markets are anticipated to contribute meaningfully to Coinbase’s bottom line starting in 2026.

Product Expansion Drives Long-Term Growth

A key aspect of Deutsche Bank’s projection is Coinbase’s planned product diversification. According to the bank, the company’s ambition to become an “everything exchange” is rapidly moving from concept to execution. Coinbase has outlined plans to offer a wide range of digital assets, which will likely include tokenized equities and prediction markets. These offerings could help Coinbase tap into a broader market and reduce its reliance on the highly volatile spot crypto trading market.

Deutsche Bank sees derivatives as a major growth area for Coinbase. The company’s acquisition of crypto options exchange Deribit is expected to strengthen its position in the derivatives market. Additionally, Coinbase is launching CFTC-regulated perpetual futures in the U.S., which is likely to attract institutional investors looking for more structured trading opportunities. The bank forecasts that derivatives could capture a growing share of Coinbase’s trading volume and revenue in the coming years.

Stablecoins and Recurring Revenue Streams

Stablecoins and subscription services are expected to provide another key source of recurring revenue for Coinbase. Deutsche Bank noted that the increasing use of stablecoins, particularly USDC, is driving steady activity on Coinbase’s platform. As stablecoins are used more widely for payments and on-chain transactions, Coinbase stands to benefit from higher, more predictable revenue streams. This could reduce the company’s reliance on the volatile trading cycles that characterize the broader cryptocurrency market.

Moreover, the bank sees 2025 as a year of heavy investment for Coinbase. Although it anticipates increased spending in the short term, Deutsche Bank expects this phase of intense investment to lead to stronger returns in the following years. The bank projects that from 2026 onward, Coinbase will experience revenue growth that outpaces its expenses. This is likely to result in margin expansion and more than 20% adjusted EBITDA growth in the near term.

Market Sentiment and Stock Valuation

Coinbase shares have experienced a decline in recent months, primarily due to a sluggish crypto market. As a result, the stock is currently trading at levels not seen in the past seven months, hovering around $245. Despite this pullback, Deutsche Bank believes that the recent dip has created a buying opportunity, as the market has undervalued Coinbase’s long-term earnings potential. The bank’s analysts argue that as Coinbase accelerates its product expansion and taps into new markets, the company’s earnings will grow significantly, making it an attractive investment at current levels.

Deutsche Bank’s $340 price target for Coinbase suggests a 40% upside from current levels. This target is based on the belief that Coinbase’s diversification strategy will pay off in the coming years, positioning it for long-term success. As the company continues to innovate and expand its product offerings, the market could begin to recognize its full growth potential.

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