Morgan Stanley Raises Coinbase Stock Price Target to $258 Ahead of Earnings

Morgan Stanley has increased its Coinbase (COIN) stock price target from $250 to $258 ahead of the cryptocurrency exchange’s upcoming earnings report. The investment bank maintained its Equal Weight rating, reflecting a cautious outlook despite the new target suggesting approximately 50% upside from the stock’s previous closing price.

The revised forecast comes as Wall Street evaluates Coinbase’s financial performance, cryptocurrency market volatility, and expansion into new digital asset services. Investors are closely watching whether the company can strengthen revenue growth amid uncertain market conditions.

Citizens JMP also adjusted its Coinbase stock forecast, lowering its price target from $325 to $280 while maintaining a Market Outperform rating. The brokerage cited weakness across financial technology and digital asset stocks, alongside more than $10 billion in financial-services ETF outflows.

Coinbase’s recent earnings highlighted challenges facing the cryptocurrency exchange. Quarterly revenue reached $1.22 billion, missing analysts’ expectations of $1.29 billion. Revenue also declined 18.5% year over year as weaker trading activity affected transaction-related income.

Meanwhile, Coinbase reported an adjusted loss of $1.36 per share, significantly exceeding the anticipated loss of $0.44 per share. Analysts now expect the company to record a full-year loss, increasing pressure on its upcoming earnings announcement.

To diversify its revenue streams, Coinbase has expanded its cryptocurrency derivatives business, introduced additional trading products, and strengthened its stablecoin services. These initiatives could help reduce dependence on traditional spot trading fees during periods of lower market activity.

Other Wall Street firms have also revised their Coinbase stock predictions. Baird raised its target from $130 to $205 while maintaining a Neutral rating. Barclays increased its forecast from $95 to $149 but retained an Underweight rating.

Wells Fargo initiated coverage with an Equal Weight rating and a $200 price target, while Argus maintained its Hold recommendation. Overall, analysts currently assign Coinbase an average Hold rating with a consensus price target of $224.29.

Regulatory uncertainty remains another concern. Michigan recently moved to restrict Coinbase’s sports prediction market offerings, highlighting potential obstacles to the company’s product expansion.

With Coinbase earnings approaching, investors will focus on trading revenue, profitability, and contributions from newer businesses. Stronger performance in derivatives and stablecoins could support future growth, although market volatility and regulatory challenges may continue to influence Coinbase stock prices.