- Deutsche Bank has initiated coverage of Coinbase with a Buy rating and a US$340 (AU$515) target, citing roughly 40% upside despite recent share price weakness.
- The bank’s bullish view is driven by Coinbase’s shift toward an “everything exchange”, with derivatives, prediction markets and tokenised equities expected to diversify revenue from 2026.
- Stablecoins, subscriptions and derivatives growth could support more recurring income and margin expansion as heavy investment moderates after 2025.
Deutsche Bank has initiated coverage of Coinbase with a Buy recommendation and a price target of US$340 (AU$515), indicating a bullish view despite ongoing weakness across crypto-linked equities. The target implies roughly 40% upside from Coinbase’s recent share price of around US$245.83 (AU$372.34), with the stock remaining broadly flat year to date.
The bank’s positive outlook is anchored in Coinbase’s shift toward what it describes as an “everything exchange”, a strategy aimed at expanding the platform beyond spot cryptocurrency trading. Coinbase has outlined plans for a single onchain marketplace supporting assets ranging from cryptocurrencies to prediction markets and tokenised equities.
Deutsche Bank said the initiative is moving from concept to execution, with upcoming launches expected to materially expand the company’s addressable market over time. Prediction markets and tokenised equities are expected to begin contributing meaningfully from 2026, helping to diversify growth away from fee-heavy spot trading activity.
Derivatives were highlighted as a central pillar of the upside case. The acquisition of crypto options exchange Deribit, alongside the rollout of CFTC-regulated perpetual-style futures in the United States, is expected to drive increased participation from institutional clients as incentives normalise.
Related: Visa Brings USDC Settlement Onshore, Accelerating Stablecoins in U.S. Payments
Stablecoins Offer Long-Term Growth Potential
Stablecoins and subscription services were also identified as sources of recurring revenue, supported by rising USDC balances and greater use of stablecoins for payments and onchain activity. Deutsche Bank said these trends could help smooth earnings across crypto market cycles.
While 2025 is expected to involve elevated investment, the bank believes the most resource-intensive spending phase is largely behind the company. From 2026, Deutsche Bank expects revenue growth to exceed expense growth, enabling margin expansion and adjusted EBITDA growth of more than 20%.
Related: FDIC Advances Stablecoin Rules Under GENIUS Act
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