Coinbase Global (COIN) Stock: Goldman Sachs Upgrade Drives 8% Rally on Infrastructure Growth

TLDR

• Goldman Sachs upgraded Coinbase stock from neutral to buy with a $303 price target, representing potential 18% upside
• COIN shares jumped 8% on Monday, closing at $254.92 following the upgrade announcement
• Goldman cited Coinbase’s growing infrastructure revenue, now 40% of total revenue compared to under 5% five years ago
• The bank highlighted new product launches including prediction markets, tokenization, U.S. equities trading, and derivatives
• Goldman expects broader crypto adoption in 2026 from retail and institutions, though regulatory outcomes remain a key factor

Coinbase stock surged 8% Monday after Goldman Sachs upgraded COIN from neutral to buy. Shares closed at $254.92.

Coinbase Global, Inc., COIN

Goldman Sachs analyst James Yaro raised his Coinbase price target from $294 to $303. This represents 18% upside from current levels.

The Coinbase stock upgrade focuses on the company’s shift beyond crypto trading. Goldman highlighted infrastructure growth and new product launches.

Yaro cited “selective optimism” about crypto infrastructure businesses. He pointed to growth in tokenization and prediction markets.

Coinbase now generates 40% of revenue from infrastructure services. These include custody, staking, and subscriptions. Five years ago, these represented under 5% of revenue.

CEO Brian Armstrong outlined the “everything exchange” strategy for 2026. Plans include stablecoins, expanded services, and the Base layer-2 network.

Coinbase Stock Benefits from Product Expansion

Coinbase launched multiple products in December. New offerings include U.S. equities, prediction markets, derivatives, and banking services.

The company partnered with Kalshi for prediction markets integration. This targets one of crypto’s fastest-growing sectors from 2024.

Goldman sees large potential markets but stressed liquidity matters. Coinbase’s existing user base provides an advantage in building scale.

Competition is increasing as traditional brokers add crypto. Crypto firms are also expanding into traditional finance.

COIN Stock Faces Regulatory Questions

Goldman expects wider crypto adoption in 2026. The bank cited potential U.S. regulatory developments as catalysts.

Yaro said reform could boost institutional adoption. A draft crypto market structure bill in Congress proves critical.

Failure to pass the bill would create headwinds. Goldman’s upside case depends on favorable regulatory outcomes.

The bank expects margin pressure to continue. Competition and higher customer acquisition costs will limit expansion.

Goldman forecasts flat adjusted EBITDA margins for 2026. Rate cuts and competition will offset revenue growth.

Bitcoin traded above $94,000 Monday. The crypto price move supported the Coinbase stock rally.

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