Bank of America Upgrades Coinbase to 'Buy' on Base Prospects, Tokenization Tailwinds
Bank of America analysts upgraded Coinbase to “Buy” from “Neutral,” citing its leadership in tokenization and potential gains from its blockchain network, Base. The analysts maintained a $340 price target, noting improved outlook due to recent product launches such as stock trading and prediction markets that could diversify revenue. The debut of Coinbase Tokenize positions the company to serve asset managers interested in issuing tokenized securities, leveraging its large institutional and retail client base to create and distribute new products. Expansion areas identified include stocks, ETFs, real estate, and private companies. Analysts see further upside if Coinbase launches a native Base token, which could generate substantial cash and incentivize ecosystem participation, though Coinbase has not committed to issuing a token. Regulatory developments could influence such a launch. Coinbase stock traded at $248, still 40% below its July high, but product velocity is cited as increasing. Goldman Sachs also recently upgraded Coinbase, highlighting growing competition, particularly from Binance’s U.S. affiliate if regulatory harmonization occurs, which could challenge Coinbase with greater liquidity and lower fees.
