HC Wainwright double-upgrades Coinbase on crypto rally, regulatory momentum

Investing.com -- HC Wainwright raised its rating on Coinbase Global Inc to Buy from Sell and lifted its price target to $425 from $300, citing stronger crypto asset prices and optimism over U.S. regulatory progress.

The brokerage said it expects rising digital asset values and seasonal strength in trading activity to boost Coinbase’s results in the fourth quarter, while new legislation could provide a further lift.

It assigned a high probability to U.S. market structure reform passing the Senate by year-end after the CLARITY Act cleared the House in July.

Analysts said consensus forecasts for the company’s third-quarter results, due after the close, are “well-calibrated,” with modest upside potential on both transaction and subscription revenue. HC Wainwright projects total revenue of $1.84 billion, slightly ahead of the $1.81 billion consensus, and expects adjusted earnings of $1.28 a share.

The firm said Coinbase’s recently closed acquisition of crypto derivatives exchange Deribit should contribute meaningfully to trading revenue for the first time this quarter. It also expects subscription and services revenue to exceed guidance, helped by higher prices for Ethereum and Solana and growth in USD Coin’s market capitalization.

For 2025, HC Wainwright raised its revenue forecast to $7.4 billion and its adjusted earnings estimate to $4.99 per share, citing accelerating institutional demand for digital assets.

The firm acknowledged risks from crypto volatility and regulatory uncertainty but said “rising asset prices and regulatory tailwinds” support its bullish outlook.

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