JPMorgan has upgraded its rating on Coinbase stock to overweight from neutral, raising the price target to $404 from $342. The bank cites eased risks, attractive valuation compared to peers, and new monetization opportunities like a potential Base token. Shares rose about 4% in early trading to around $332.
JPMorgan analysts upgraded Coinbase (COIN) to an 'overweight' rating from 'neutral' on October 24, 2025, highlighting that risks have eased and the company's valuation appears attractive relative to its crypto peers. The bank raised its price target on the stock to $404 from $342, valuing Coinbase at 50 times projected 2027 earnings and factoring in $4 billion from a potential Base token. This sets a December 2026 price target.
A key catalyst identified by the analysts is a potential token for Base, Coinbase's Layer 2 blockchain launched in August 2023, which has become one of the largest in the ecosystem. JPMorgan estimates that a Base token could achieve a market cap of $12 billion to $34 billion, potentially adding up to $12 billion in value to Coinbase by allowing it to capture more of Base's growth. The report states this move could spur development, community participation, and long-term infrastructure growth.
Additionally, JPMorgan pointed to Coinbase's efforts to monetize USDC through yield segmentation and its Coinbase One subscription service. By offering 4% returns to subscribers, the company could lift annual earnings by about $1 per share, according to the analysts.
While acknowledging risks from competition with decentralized exchanges (DEXs), the bank noted that market share between DEXs and centralized exchanges has stabilized. Coinbase's integrated model—covering brokerage, market making, exchange, and custody—should help maintain profitability even if fees decline. Following the upgrade, Coinbase shares were about 4% higher in early trading, trading around $332.