Deutsche Bank has officially initiated coverage of Coinbase (COIN) with a buy recommendation and a target price of $340, approximately 40% higher than the current market price. The bank believes that the recent decline in the stock has led the market to underestimate the profit contributions from new products that Coinbase plans to launch starting in 2026.
According to Deutsche Bank, Coinbase is transitioning from a traditional spot crypto exchange to an “everything exchange” model, where users can trade crypto, tokenized stocks, prediction markets, and derivatives on a single on-chain platform. Derivatives and stablecoins are expected to account for an increasing share of revenue, helping to reduce dependence on spot trading fees.
The bank also highly values long-term growth drivers such as the acquisition of Deribit, the rollout of CFTC-regulated perpetual futures contracts in the US, along with increased use of USDC and subscription services. From 2026 onwards, Deutsche Bank forecasts Coinbase’s revenue will grow faster than costs, supporting expanded profit margins and an adjusted EBITDA growth of over 20%.
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