Key Highlights
- Goldman Sachs raised Coinbase’s (COIN) price target from $173 to $196 while keeping its “Buy” rating.
- Coinbase shares were trading at $184.47, up 2.80%, after briefly reaching $185.
- Goldman cited growth in brokerage, prediction markets, crypto trading activity, and regulatory progress as factors behind the higher target.
Coinbase (COIN) shares rose on Tuesday after Goldman Sachs raised its price target for the crypto exchange from $173 to $196 while keeping its “Buy” rating.
Goldman Sachs analyst James Yaro made the change as Goldman pointed to growth in Coinbase’s brokerage and prediction markets businesses, stronger crypto trading activity, and progress on crypto regulation.
At the time of writing, COIN was trading at $184.47, up 2.80% over the past 24 hours. The stock climbed from an intraday low of $176, which it was when the market opened, and briefly reached $185 before pulling back, according to Google Finance data (on August 25 at 21:46 IST).
Monday’s closing price was $179.48, putting Goldman’s new $196 target about 9.2% above that level. The increase also represents a 13.3% rise from the previous $173 target.
Other analysts have also issued higher price targets. According to Google Finance, Bernstein’s Gautam Chhugani set a price target of $330 on August 21, while Manyi Lu of DBS set a $200 target on August 13.
However, these are individual analyst estimates and do not indicate that Coinbase will reach those levels.
COIN recovers after falling below $178
COIN has recovered after trading below the $178 level for several months.
The stock reached a multi-month high of $222 in May before falling below $178. According to a previous CryptoTimes report, it regained momentum this month and briefly climbed to $190.23 on August 8 after closing at $172.35 the previous day and opening at $180.04.
That earlier rally coincided with gains in Bitcoin and other crypto-related stocks amid renewed attention on U.S. cryptocurrency regulation.
Broader market provides additional context
The broader financial market has also experienced notable moves.
The U.S. Treasury recently announced that it would increase some long-term Treasury buybacks to at least $4 billion per operation, from the previously planned $2 billion. The move came after the 30-year Treasury yield reached 5.34%, its highest level since 2007, before falling after the announcement, according to Reuters.
That development provides broader market context but was not identified as a reason for Goldman’s revised Coinbase target. For Coinbase, Goldman’s updated target is based primarily on expectations for brokerage growth, prediction-market activity, crypto trading volumes, regulatory progress and cost management.
With COIN trading near $184.47, the stock is about 6.3% below Goldman’s $196 target. Whether it reaches that level will depend on the performance of the businesses and market conditions underpinning the bank’s forecast.
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