Coinbase Stock Falls Pre-Market Despite Bernstein’s Bullish Call Driven By Trump’s Crypto Push – Retail’s Unconvinced

Beyond trading, Bernstein sees growth in Coinbase’s non-transactional businesses, projecting a 31% compound annual growth rate in these segments.

Coinbase (COIN) shares fell as much as 2% in pre-market trading Tuesday, even as Bernstein initiated coverage with an ‘Outperform’ rating and a $310 price target. 

The call implies a potential upside of nearly 65% from Monday’s closing price.

According to a CNBC report, Bernstein analyst Gautam Chhugani expects a shift in momentum for the cryptocurrency exchange, pointing to increased regulatory support under a potential second Trump administration.

“With the Trump Administration’s aspiration to make America the ‘crypto capital of the world,’ Coinbase remains the dominant platform (66% U.S. market share) to ride the tailwinds,” Chhugani wrote in a note, citing the U.S. President’s establishment of a Bitcoin Strategic Reserve and his appointment of investor David Sacks as the nation’s first crypto czar.

The analyst also highlighted two pending bills that could boost the industry. A stablecoin regulation bill is expected in the first half of 2025, followed by legislation in the second half to clarify the regulatory framework for digital assets and market structure.

While regulatory clarity could bring more competition from fintech firms, brokers, and banks, Chhugani expects strong crypto market conditions and increased U.S. dominance to outweigh any pressure on Coinbase’s market share and pricing.

Beyond trading, Bernstein sees growth in Coinbase’s non-transactional businesses, projecting a 31% compound annual growth rate in these segments.

On Stocktwits, retail sentiment around Coinbase’s stock remained in ‘bearish’ territory and message volumes dipped to ‘extremely low’ from ‘low’ a day ago.

Analysts remain divided on Coinbase. Of the 27 covering the stock, 12 rate it a ‘Buy’ or ‘Strong Buy,’ while the remaining 15 have a ‘Hold’ rating, according to Koyfin data. 

The average price target sits at $324.32 – higher than Bernstein’s estimate – implying a potential 70% gain.

Coinbase shares have fallen more than 25% year-to-date.

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