Bank of America Raises Coinbase to Buy, $340 Target Cites Base L2 and Tokenization
Bank of America upgraded Coinbase (COIN) to a buy rating and set a $340 target, implying roughly 38% upside from recent levels. The upgrade cites accelerated product development, a cheaper valuation after a roughly 40% pullback from 2024 highs, and strategic expansion beyond trading into tokenization, stocks/ETFs, and prediction markets. Key growth drivers highlighted are Coinbase’s Base Layer‑2 network on Ethereum and the potential for a future native token, plus the Tokenize product that bundles issuance, custody and compliance for real‑world asset tokenization. BofA frames Coinbase as moving toward an “everything exchange” with broader cross‑sell opportunities and larger total addressable market, and notes a potentially more favorable U.S. regulatory outlook as an additional tailwind. Risks include renewed competition if Binance re‑enters the U.S. market and downside from further crypto price corrections. The bank’s view complements a recent Goldman Sachs buy call that observed crypto stocks trade at discounts after 2025 pullbacks. For traders, the upgrade signals analyst conviction in Coinbase’s product roadmap and tokenization strategy, suggesting medium‑term upside if execution and macro/regulatory conditions remain supportive, while short‑term volatility and sector risk remain significant.
Bullish
The upgrade to buy and $340 target is a bullish signal for COIN because it combines valuation upside, strategic product catalysts and potential regulatory improvement. Bank of America highlights concrete growth drivers: Base Layer‑2 network (and possible native token) and the Tokenize product that targets real‑world asset issuance, custody and compliance. Those expand Coinbase’s total addressable market beyond spot trading into tokenized stocks/ETFs and prediction markets, improving cross‑sell opportunities and revenue diversification. The stock’s prior ~40% pullback and P/E compression make upside more plausible if crypto markets stabilize. Short‑term, the news may spur buying interest and reduce short interest, yet volatility remains likely because COIN’s price correlates with crypto market moves and faces competitive risk (notably a potential Binance U.S. return) and execution risk for new products. Therefore: near‑term impact = possible positive repricing and volatility; medium‑term = bullish if product launches and regulatory clarity materialize; long‑term = conditional on sustained adoption of tokenization and Base network economics.