Goldman Sachs turns bullish on Coinbase after stock’s 12-month slide
CNBC••entertainment
Key Points:
- Goldman Sachs upgraded Coinbase shares from neutral to buy and raised its 12-month price target to $303, implying a 28% upside potential.
- Coinbase's shares have declined 13% over the past year, underperforming the S&P 500, which gained 15% in the same period.
- Analyst James Yaro highlighted Coinbase's transition from cyclical to structural growth, supported by strong business fundamentals and competitive product rollouts.
- Growth prospects are driven by Coinbase's core offerings and expanding crypto infrastructure businesses, which are expected to reduce earnings volatility.
- Subscription and services segments, including custody, stablecoins, staking, and prime brokerage, are projected to grow significantly and contribute to more stable revenue streams.
