Overview
- JPMorgan lifted Coinbase to overweight from neutral and set a December 2026 price target of $404, saying the risk-reward has improved versus peers.
- The note highlights two potential drivers: a Base Layer 2 token under consideration that JPMorgan estimates could be worth $12 billion to $34 billion, with up to $12 billion potentially accruing to Coinbase.
- Analysts also point to USDC yield offerings through Coinbase One, modeling a 4% return for subscribers that could add roughly $1 per share in annual earnings.
- JPMorgan’s valuation framework applies a 50x multiple to projected 2027 earnings and includes about $4 billion of value from Base in its target.
- Coinbase shares traded higher following the report, up about 4% in early action and more than 6% later in the session, as the bank flagged DEX competition risk but said market share has stabilized and the firm’s integrated model supports profitability.