Bernstein predicts Coinbase stock to rise 64%

Bernstein has given Coinbase a strong rating, predicting its stock could rise more than 60%. The price target is set at $310, which is about 64% higher than its current closing price. This year, Coinbase's stock has dropped by 24%. The decline followed a period of strong momentum after the U.S. elections. However, analyst Gautam Chhugani believes things will improve soon. He credits President Donald Trump's support for the cryptocurrency industry as a key factor for a potential rebound. Chhugani noted that Trump's administration aims to make the U.S. a leader in the crypto space. Coinbase holds a dominant position in the market with a 66% share in the U.S. Additionally, Trump has created a Bitcoin Strategic reserve and named David Sacks as a crypto czar. Chhugani also mentioned upcoming legislation that could provide more regulatory clarity for cryptocurrencies. He believes that while more competition may arise from fintechs and banks, this could bring a strong bull market for Coinbase. Furthermore, he highlighted Coinbase's growth beyond trading in cryptocurrencies. He expects its non-trading revenues to grow by about 31% each year. Analysts have mixed opinions on the stock. Out of 26 who follow Coinbase, 11 recommend buying it, while 15 suggest holding it.