Benchmark-StoneX raised its price target for Coinbase (COIN) to $270 on Thursday — a level 60% above where the stock currently trades. The call came hours after the crypto exchange rolled out a slate of new products, and the firm said it sees room for growth even in a choppy market.
What drove the price target
The $270 target represents a big bet on Coinbase's ability to expand beyond simple trading. Benchmark-StoneX reiterated its buy rating on the stock after what it described as an array of product announcements from the company. The firm didn't issue new financial projections but argued the current share price doesn't reflect the potential of those initiatives.
Coinbase shares were trading around $168 at the time of the analyst note. That means the $270 target implies a nearly 61% upside from where the stock sat Thursday morning.
Product announcements behind the call
Coinbase recently unveiled a series of new features and services. Those include deeper integration with Ethereum layer-2 networks, an expanded wallet offering, and a push into institutional custody services. The company also announced plans to streamline the process for developers building on its platform.
Benchmark-StoneX didn't single out any one product as the reason for the price target bump. But the analyst note pointed to the cumulative effect of the new offerings, suggesting they could drive user growth and higher revenue per customer over time.
Current market context
The call lands at a time when crypto stocks are under pressure. Regulatory uncertainty in the U.S. and a slump in trading volumes have weighed on Coinbase's stock this year. The company reported weaker-than-expected quarterly earnings in February, partly due to a drop in transaction revenue.
Still, Benchmark-StoneX sees the product push as a way to diversify revenue. The firm noted that subscription services and stablecoin income have become a bigger piece of Coinbase's business. That shift could make the stock less dependent on the ups and downs of Bitcoin and Ether prices.
The $270 target is one of the higher on Wall Street for Coinbase. The median analyst price target for the stock is closer to $200, according to data compiled by Bloomberg.
Whether other firms follow Benchmark-StoneX with similar upgrades will depend on how quickly Coinbase's new products translate into actual revenue growth. The company's next quarterly report, expected in early May, will offer the first hard numbers since the announcements.
