Catenaa, Friday, December 26, 2025-Deutsche Bank has started coverage of Coinbase (COIN) with a buy rating and a $340 price target.
This is roughly 40% upside from current levels as the crypto exchange expands its platform offerings.
The bank cited Coinbase’s transition toward an “everything exchange,” including tokenized stocks, prediction markets, and on-chain products, as driving long-term growth potential.
The rating follows Coinbase’s announcement of a product showcase expected to unveil tokenized equities and prediction markets.
Deutsche Bank identified these areas as emerging revenue sources, likely contributing meaningfully from 2026 and reducing reliance on fee-heavy spot crypto trading. Derivatives are also seen as a structural growth opportunity, supported by Coinbase’s acquisition of crypto options exchange Deribit and the rollout of CFTC-regulated perpetual futures for US institutional clients.
Stablecoins and subscription services form another pillar of growth.
Deutsche Bank noted rising USDC balances on the platform and increased use of stablecoins for payments and on-chain activity, which should generate more recurring revenue and smooth earnings volatility.
While 2025 is expected to remain a heavy investment year, Deutsche Bank anticipates revenue growth will outpace expenses from 2026, enabling modest margin expansion and over 20% adjusted EBITDA growth next year.
Coinbase shares recently hit seven-month lows near $245 amid a stalling crypto market, leaving the stock undervalued relative to the platform’s projected earnings as product expansion accelerates.
Analysts see the rating as an endorsement of Coinbase’s strategic shift from a traditional crypto exchange toward a diversified digital asset ecosystem with multiple revenue streams.
