Coinbase Global (NASDAQ: COIN) shares traded higher on Oct. 5 after Bank of America raised its price target on the cryptocurrency exchange to $203 from $174, while keeping a Buy rating on the stock. The firm pointed to stronger stablecoin revenue in later years as a key driver of its upgraded outlook, even as it softened its near-term expectations for crypto trading volumes.

Alongside the higher target, BofA increased its earnings estimates for Coinbase for 2027 and 2028, reflecting improved stablecoin-revenue assumptions under a higher interest-rate environment.

COIN traded near $190.43 during the latest market check, placing BofA's revised target roughly 6.6% above the share price at that level.

Bank of America Lifts Coinbase Price Target

Bank of America lifted its Coinbase price target by $29 while retaining its Buy rating. Analyst Siegenthaler raised the bank's 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.

Price targets are analysts' estimates of a stock's fair value, and revisions of this kind typically follow updated earnings assumptions rather than short-term market moves. At the same time, the bank reduced some of its 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 central 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 the income generated from the 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 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 revision highlights 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.

Target Remains Below Earlier 2026 Levels

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. For readers tracking the stock, the variables to watch are the same ones behind BofA's revision — interest-rate decisions, trading-volume trends, and stablecoin-related revenue — each of which feeds directly into the estimates analysts publish.

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

Source: The Market Periodical