BTIG reiterates Coinbase at Buy with $240 price target, citing institutional growth runway

BTIG Research is sticking with its bullish call on Coinbase, reiterating a Buy rating and $240 price target even as the stock trades roughly 40% below that level. Analyst Andrew Harte reaffirmed the thesis on September 16, following a sit-down with Brett Tejpaul, Co-CEO of Coinbase Institutional, who laid out a roadmap that extends well beyond simple crypto trading.

With COIN hovering around $172, the gap between the current price and BTIG’s target is wide enough to raise eyebrows.

The institutional playbook

Tejpaul shared a three-phase strategy for Coinbase’s institutional arm during the meeting with BTIG. Phase one focuses on building out a core institutional platform. Phase two expands into payment services and stablecoins. Phase three ventures into tokenized assets and continuous markets.

The institutional segment currently contributes approximately 20% of Coinbase’s total revenue. Coinbase’s last twelve months of revenue stood at $6.04 billion with an 85.8% gross margin.

Why the target dropped from $260

Back on July 31, Harte lowered the price target from $260 to $240 while keeping the Buy rating intact. The reason: a tough second quarter defined by a 25% decline in crypto spot trading volumes on a quarter-over-quarter basis. Results were described as the weakest in two years.

BTIG’s read was that much of the weakness had already been anticipated by the market. The firm pointed to ongoing market-share gains and platform diversification as reasons to stay constructive.

Where Wall Street stands

The consensus price target across 33 analysts covering Coinbase sits at approximately $220, with 18 of those analysts rating the stock a Buy. That consensus target still implies roughly 28% upside from the $172 trading level.

Coinbase went public in April 2021 at a reference price of $250.