Deutsche Bank initiates coverage of Coinbase with Buy rating, sees 40% upside to $340
Deutsche Bank initiated coverage of Coinbase (ticker COIN) with a buy rating and a $340 price target, implying roughly 40% upside from current levels as the crypto exchange pushes further into what it has described as an “everything exchange.”Coinbase executives began outlining the vision earlier this summer, pitching a one-stop, onchain platform for trading assets ranging from cryptocurrencies to tokenized stocks and prediction markets.Deutsche Bank said that strategy is now moving from concept to execution, with product launches expected to materially expand the company’s addressable markets over time.The call comes as Coinbase is set to host a product showcase later today, where it is expected to unveil prediction markets and tokenized equities, according to a Bloomberg report last week. Deutsche Bank identified both areas as emerging revenue drivers that could begin contributing meaningfully from 2026, helping diversify Coinbase away from fee-heavy spot crypto trading.COIN tailwindsDerivatives are central to the upside case. Deutsche Bank pointed to Coinbase’s acquisition of crypto options exchange Deribit and the rollout of CFTC-regulated perpetual-style futures in the U.S. as structural growth opportunities, particularly among institutional clients. The bank expects derivatives to take a growing share of trading volume and revenue as incentives normalize.Stablecoins and subscription services form another pillar. Deutsche Bank highlighted rising USDC balances on Coinbase’s platform and increased use of stablecoins for payments and on-chain activity, which it said should support more recurring revenue and reduce reliance on volatile trading cycles.While 2025 remains a heavy investment year, Deutsche Bank said the most intensive phase of spending is likely behind the company. It expects revenue growth to outpace expense growth from 2026, enabling modest margin expansion and driving more than 20% adjusted EBITDA growth next year.Coinbase shares have slid in recent months alongside a stalling crypto market and now trade near seven-month lows around $245, according to The Block price data. Deutsche Bank said the pullback has left the stock undervaluing the platform’s longer-term earnings potential as product expansion accelerates. Coinbase (COIN) stock price chart. Source: The Block/TradingViewDisclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.