Coinbase Stock (COIN) Gains Bullish New Coverage with Buy Rating

Coinbase's stock price (NASDAQ: COIN) is up 1.64% this pre-market, with Bitcoin prices surging, and the leading cryptocurrency platform gaining fresh attention from Wall Street analysts. Argus analyst Kevin Heal initiates coverage with a “Buy” rating and a price target of $400.

This bullish outlook comes amidst a period of significant growth and strategic developments for the company, including its recent inclusion in the S&P 500 index and expansion into new crypto products.

The Argus initiation highlights Coinbase's dominant position in the cryptocurrency trading landscape. Beyond its core trading platform, the company offers a suite of services including custodial solutions, sophisticated analytics tools, and robust risk management capabilities, catering to both institutional and retail investors.

Heal's research note emphasized that Coinbase's inclusion in the S&P 500 in May has further legitimized the company and is expected to drive increased institutional investment. Specifically, analysts initially projected this inclusion could result in approximately $16 billion of buying pressure on Coinbase stock as index funds and institutional investors adjusted their portfolios.

A look at Coinbase's historical performance reveals an impressive trend, with gains of 50% in the stock since the start of the year and 600% in the past three years.

Coinbase's recent financial performance further bolsters the bullish narrative. In the most recent quarter, the company reported trading volume of $393 billion, exceeding analyst estimates. Institutional volume accounted for a substantial $315 billion, while consumer volume reached $78 billion, demonstrating the broad appeal of the platform.

Argus acknowledges that Coinbase's valuations are “off the charts,” but argues that the company's superior margins compared to its peers and its promising growth runway justify the premium. Coinbase is actively expanding its product offerings, including its pursuit of tokenized equities, seeking approval from the SEC to offer digital tokens representing ownership of traditional stocks on the blockchain.

This initiative, if approved, could position Coinbase as a direct competitor to traditional stock trading platforms, further diversifying its revenue streams.

However, Coinbase has faced challenges. In May 2025, the company disclosed a cybersecurity breach where hackers accessed personal data of users by bribing overseas customer service employees. While passwords and funds remained secure, the compromised information included names, birth dates, and addresses. The attackers attempted to extort $20 million from Coinbase, a demand that was publicly rejected by CEO Brian Armstrong. The company estimated the incident could cost between $180 million and $400 million in reparations and compensations.

Despite these challenges, Coinbase has also secured significant regulatory victories. In February 2025, the SEC dismissed its lawsuit against Coinbase, which had alleged that the company operated as an unregistered broker and exchange. This dismissal marked a significant win for Coinbase, reducing legal uncertainties and positively impacting investor confidence.

Recent analyst coverage has also been overwhelmingly positive. In June 2025, Bernstein analysts raised their price target for Coinbase to $510 from $310, maintaining an “Outperform” rating. They described Coinbase as “the most misunderstood company” in their crypto coverage universe, highlighting its dominant position in U.S. crypto trading and its inclusion in the S&P 500.

The company remains a high-growth, high-volatility play on the crypto economy. Its recent S&P 500 inclusion, ongoing product expansion, and positive analyst coverage support could support a move higher, yet risks remain.