Analyst Upgrades Coinbase to Buy, Predicts 30% Upside

Citi Research analyst Peter Christiansen has turned bullish on Coinbase Global Inc., highlighting an improved regulatory landscape as the key factor.

Despite a 52% rise in Coinbase shares this year, Christiansen sees significant growth potential due to a more favorable regulatory environment, which he believes could attract substantial institutional capital and foster stronger ties between crypto and traditional finance.

Christiansen’s optimism is bolstered by the Supreme Court’s recent decision to overturn the Chevron Deference Doctrine, which previously required courts to defer to federal agencies’ interpretations of ambiguous statutes. This change could strengthen Coinbase’s position in its legal battle with the Securities and Exchange Commission (SEC).

He also points out the potential for the U.S. to catch up with international markets in crypto activity and liquidity, as North America’s share of spot exchange volumes has recently declined. Additionally, the approval of ether exchange-traded funds (ETFs) suggests that other digital assets could gain approval, further expanding Coinbase’s market opportunities.

Due to these positive developments, Christiansen has upgraded Coinbase shares from neutral to buy and increased his target price from $260 to $345, indicating a 30% upside from current levels.