Coinbase Shares Rise After JPMorgan Boosts Rating to Overweight

JPMorgan has raised its rating on Coinbase, shifting the crypto exchange from “neutral” to “overweight” and increasing its price target to $404.

The upgrade reflects new monetization prospects and a lower risk profile, making Coinbase more appealing compared with its industry peers. Following the announcement, Coinbase shares climbed roughly 4% in early trading, trading around $332.

The bank highlighted two main growth drivers. First, Coinbase is exploring the launch of a token for Base, its Layer 2 blockchain introduced in August 2023. Base has quickly grown into one of the largest Layer 2 networks, and a native token could allow Coinbase to capture a significant portion of its expansion. JPMorgan estimates that Base could reach a market cap between $12 billion and $34 billion, with up to $12 billion potentially accruing to Coinbase. The token could also promote ecosystem development, increase community engagement, and strengthen the platform’s long-term infrastructure.

Second, JPMorgan pointed to Coinbase’s plans to enhance monetization of USDC through its Coinbase One subscription service. By offering 4% yields to subscribers, the exchange could generate an additional $1 in annual earnings per share.

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While competition from decentralized exchanges remains a factor, analysts note that market share between DEXs and centralized exchanges has stabilized. Coinbase’s integrated model – including brokerage, market making, exchange, and custody services – positions it to maintain profitability even amid potential fee pressures.

Overall, JPMorgan values Coinbase at 50 times projected 2027 earnings, factoring in potential revenue from a Base token, and set a December 2026 price target of $404, underscoring confidence in the company’s growth strategy.

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