BofA upgrades Coinbase, sees 'sizeable tailwinds; in 2026

Investing.com -- Bank of America upgraded Coinbase to Buy, arguing that the company’s product expansion, strategic pivots and cheaper valuation position it well for 2026.

The bank’s research analyst Craig Siegenthaler said it is turning positive on the stock “post 2H product velocity acceleration and stock pullback,” citing a 40% decline from its July highs.

Siegenthaler wrote that Coinbase’s push into stocks, ETFs and prediction markets brings its ambition of becoming the “everything exchange” closer to reality.

The analysts highlighted that at a December 17 product showcase, the company “detailed its expansion into stock/ETF trading and prediction markets for the first time,” expanding its total addressable market and creating cross-selling opportunities.

A major focus for BofA is Base, Coinbase’s layer-2 network built on Ethereum. The bank described Base as “key to COIN’s expansion into infrastructure,” adding that a potential native token launch “could raise billions in cash” and incentivize early adopters.

BofA also pointed to Coinbase Tokenize, which “combines issuance, custody, compliance, and access to its sizable client base,” positioning Coinbase to lead the tokenization of real-world assets.

Valuation is another driver behind the upgrade. BofA noted that Coinbase’s short interest “has doubled y/y” while its P/E multiple is “down 40% from the July–Oct range.” The bank maintained its $340 price target, which “implies a 38% return potential.”

BofA believes Coinbase is well placed as “a long-term leader,” noting that the world is “still in the early innings of crypto adoption” and that favorable U.S. policy under President Trump should provide “sizable tailwinds” in 2026.

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