Coinbase Is the 'Blue Chip' Of Crypto, Analyst Likes It On Pullback

Rosenblatt analyst Chris Brendler initiated coverage on Coinbase Global COIN with a Buy rating and a price target of $305.

Coinbase Global is down 30% in the past month due to tariffs and political uncertainty, but Brendler noted this as a buying opportunity.

The new administration's pro-crypto stance, including SEC reforms and broader support for digital assets, reinforced the analyst's bullish view for 2025.

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Coinbase Global remains the dominant player in crypto, with regulatory clarity now unlocking growth opportunities. The SEC lawsuit dismissal should be followed at the state level, allowing Coinbase Global to significantly expand its staking and other blockchain services.

Coinbase is shedding its reliance on volatile trading revenue, with non-trading revenue growing 71% in the fourth quarter of 2024. Brendler expects this trend to continue, potentially exceeding consensus estimates for 2025 and 2026.

Coinbase Global's strong brand, deep liquidity, and superior user experience have helped sustain premium pricing.

Brendler noted the new administration will be a huge positive catalyst for crypto as long-awaited regulation will drive full-blown institutional adoption.

Combined with a Strategic Bitcoin Reserve and an infinitely more friendly SEC, the analyst is optimistic about the future of crypto and related equities. However, the recent pullback is a reminder of the volatility when investing in this new technology, so he preferred the higher ground of Coinbase Global.

Brendler noted that Coinbase Global is the clear blue chip in the sector and should be a beneficiary of multiple positive tailwinds.

Coinbase Global has also proven its ability to navigate both Bull and Bear markets, and with the growth in nontrading revenue, the analyst noted the stock would prove more resilient in the next "Crypto Winter."

Fortunately, he noted it is more of a "Crypto Spring" right now and like the stock here after the pullback.

Brendler projected first-quarter revenue of $2.19 billion and adjusted EPS of $3.61.

Price Action: COIN stock is up 2.44% at $219.24 at last check Friday.

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