Coinbase Stock Rises as BofA Lifts Price Target to $203

Coinbase stock traded higher on Oct. 5 after Bank of America raised its price target to $203. The firm kept its Buy rating while pointing to stronger stablecoin revenue in later years.

The move came despite softer near-term expectations for crypto trading volumes. BofA instead increased its 2027 and 2028 earnings estimates as higher interest rates improved its stablecoin-revenue assumptions.

COIN traded near $190.43 during the latest market check. That placed BofA’s revised target about 6.6% above the stock price.

Bank of America Raises Coinbase Price Target

Bank of America lifted its Coinbase price target by $29 while retaining its Buy rating. Siegenthaler raised the longer-term earnings estimates after factoring in expected stablecoin revenue under a higher interest-rate environment following the Federal Reserve’s September 2026 rate hike.

The bank also reduced some near-term forecasts for Coinbase as cryptocurrency trading volumes weakened. The adjustment came despite strong third-quarter price gains across major cryptocurrencies, with Bitcoin rising 43% and Ethereum gaining 70% during the period.

Stablecoin Revenue Supports Long-term Estimates

Stablecoins form a key part of the revised earnings outlook. Coinbase generates revenue from stablecoin-related activities, including its relationship with USDC issuer Circle. Higher interest rates can increase income generated from reserves backing stablecoins, creating a revenue source for Coinbase beyond traditional spot and derivatives trading.

Bank of America raised its earnings-per-share estimates for Coinbase for 2027 and 2028. The changes reflect expectations for higher stablecoin revenue during those years. The bank’s forecasts remain sensitive to future interest-rate conditions because reserve income can change when monetary policy shifts.

Coinbase Faces Softer Trading Volume Forecasts

Coinbase has faced weaker trading activity even as crypto prices moved higher. Bank of America reduced its near-term forecasts because trading volumes did not rise at the same pace as asset prices. The change shows the difference between price appreciation across crypto markets and the transaction activity that directly supports exchange trading revenue.

Coinbase’s reported financial results also show pressure on earnings. The company recorded $1.41 billion in first-quarter revenue and a GAAP net loss of $394 million. During the same quarter a year earlier, Coinbase posted $2.03 billion in revenue and net income of $65.61 million.

COIN Stock Target Remains Below Earlier 2026

Bank of America’s latest target remains below its earlier 2026 forecasts for Coinbase. The bank set a $340 target in January before cutting the figure to $218 in May and later to $174.

The new $203 target represents a partial recovery from the previous level while remaining below the January forecast. At press time, COIN stock was trading at $186.46, up 1.89% on the day.

Other Wall Street firms hold different views on Coinbase. Citizens JMP maintains a Buy rating, while Barclays rates the stock Sell. Coinbase shares therefore, continue to trade against a range of analyst expectations as investors assess cryptocurrency prices, trading activity and stablecoin-related revenue.

This article is for informational purposes only and does not constitute financial or investment advice. Analyst targets, earnings estimates and market conditions may change.