Bank of America Upgrades Coinbase Rating from Underperform to Neutral

Bank of America has revised its rating on Coinbase from underperform to neutral, with a raised price target of $217, up from $110. According to the bank’s report, the current macroeconomic environment has fostered growth in crypto market capitalization and trading volumes.

While the bank acknowledges positive dynamics, it also cautioned that certain risks, such as Coinbase’s dependence on transaction revenue and regulatory uncertainties related to the SEC lawsuit, could limit the stock’s potential upside.

Coinbase shares saw a 2.5% increase in pre-market trading on Friday following the upgrade to neutral. The stock, trading around $204 at the time of publication, has benefited from Bank of America’s revised outlook. Bank of America’s analysts, led by Mark McLaughlin, emphasized several factors contributing to the upgrade, including Coinbase’s expense management and diversification efforts, which are expected to bolster earnings.