Coinbase Gets ‘Buy’ Rating Upgrade From Bank Of America: Here’s The Breakdown
Coinbase (COIN), a US cryptocurrency exchange, recently received a positive outlook from Bank of America, one of the leading financial institutions on Wall Street, which upgraded its rating to “buy.”
This change comes after a comprehensive review of Coinbase’s strategic position, as the company prepares for a potentially successful 2026. This follows 2025 where major purchases are made to greatly expand the range of services offered outside of just trading.
Bank of America Boosts Coinbase’s Prospects
Research analyst Craig Siegenthaler of Bank of America highlighted several factors contribute to this optimistic view. He noted that Coinbase’s continued product expansion, strategic pivots, and attractive valuations create a strong foundation for the company’s performance in the coming years.
Siegenthaler pointed out that the bank’s updated status on Coinbase’s stock, COIN, is related to the acceleration of the production speed and the decline in the stock price seen in the second half of 2025.
Recent market data shows that cryptocurrency exchange’s shares are down nearly 40% from a high of $445 reached back in July of last year, making this an attractive entry point for investors.
The exchange is also diversifying its offerings, looking beyond cryptocurrency to include stocks, exchange rates (ETFs), and prediction markets. According to Siegenthaler, this expansion brings Coinbase closer to realizing its vision of being the “everything exchange.”
Price Target $340 for COIN
A key factor in Bank of America’s performance evaluation is the company’s crypto base, the Layer-2 (L2) network it is built on. Ethereum (ETH) blockchain. The analyst considers Base to be an important step in the evolution of Coinbase from a mere trading platform to a full-fledged crypto infrastructure provider.
The expected launch of a native token in the future may serve as a major incentive, potentially raising billions and improving the capabilities of the platform.
Another initiative that is generating the interest of Bank of America is Coinbase Tokenize. This feature includes issuance, maintenance, compliance, and access to the exchange’s customer base, positioning the company as a leader in token market.
From a valuation perspective, Bank of America noted that Coinbase’s price-to-earnings (P/E) ratio has depressed significantly since mid-2024, improving the stock’s risk-reward profile.
This calibration adjustment, along with more positive control environment which is expected under President Donald Trump, could provide “big storms” for the crypto company as the industry grows.
Looking ahead, Bank of America envisions Coinbase solidifying its central role in all transactions, infrastructure, and tokenization as the next phase of cryptocurrency adoption unfolds.
The bank also reiterated its $340 price target for Coinbase stock, indicating its confidence in the company’s long-term potential. This suggests that the company’s stock price could recover by 38% in the near term if it does.
Featured image from Shutterstock, chart from TradingView.com
Planning process because bitcoinist focuses on delivering well-researched, accurate, and unbiased content. We maintain strict sourcing standards, and each page is diligently reviewed by our team of senior technical experts and experienced editors. This process ensures the integrity, relevance, and value of our content to our readers.
