Benchmark proposed a 'buy' investment opinion for the US cryptocurrency exchange Coinbase, expecting a stock price rebound with regulatory clarity restoration.
According to The Block on the 23rd (local time), the investment bank Benchmark proposed a 'buy' investment opinion for the cryptocurrency exchange Coinbase and set a target stock price of $252. This represents a potential increase of about 33% compared to the current stock price, reflecting 21 times the expected earnings per share in 2026.
Mark Palmer, senior analyst for fintech and digital assets at Benchmark, explained, "As the cryptocurrency market emerges from a regulatory gray area, Coinbase will benefit the most with a 66% market share in the US market, $404 billion in assets, and over 250 tradable digital assets."
Coinbase's stock is currently trading around $190, a 45% drop from its peak in December last year ($343.62). The previous upward trend after the Trump administration's launch had stagnated due to tariff concerns and regulatory delays. However, recent legislative developments in the US Congress regarding stablecoins and market structure are increasing the possibility of reevaluation.
Both the House and Senate have proposed the 'STABLE Act' and 'GENIUS Act', which specify licensing requirements, risk management, and 1:1 reserve requirements for stablecoin issuers, with support from many Republican and some Democratic lawmakers. Mark Palmer predicted that the stablecoin bill has a high likelihood of passing within the next 60-90 days.
Coinbase, along with Circle, is a company that jointly developed USDC, the largest stablecoin in the US, and is expected to directly benefit by receiving a portion of reserve interest income. The market structure reform bill 'FIT 21' is also being discussed for reintroduction this year, with Senator Tim Scott, chairman of the Senate Banking Committee, mentioning the possibility of legislation by August.
Palmer stated that "institutional investors who were waiting due to institutional uncertainty may return to the cryptocurrency market with legislative confirmation" and added that Coinbase will maintain market superiority through its strong brand, security history, and service diversification.
He particularly projected that non-trading revenue (subscriptions and services) will grow at an average annual rate of 36% by 2026, analyzing that this sector can serve as a buffer against cryptocurrency price volatility.
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