Deutsche Bank believes that Coinbase ‘s product expansion could be a key driver of revenue growth and reduced earnings volatility over time. The bank initiated the cryptocurrency exchange with a buy rating and $340 price target, which implies potential upside of 35% from here. COIN YTD mountain COIN YTD chart Analyst Brian Bedell believes that Coinbase’s product expansion has created a better growth path ahead for the company. This should also widen its addressable markets and diversify its products and services, while also helping mitigate against any future pricing pressures within retail crypto trading. “We see the company benefiting financially from the next stage of its evolution by leveraging its long-established solid market position within the crypto ecosystem into a much broader on-chain platform via a substantial build of a wide array of capabilities — within its ‘everything exchange’ strategy,” he wrote. “The rising convergence of TradFi & DeFi & individuals adopting on-chain platforms can be strong tailwinds over time.” With 2025 being a major investment year, he sees the company in a good position to scale this investment into 2026 and beyond, and that its revenue growth could exceed expense growth in reasonably good crypto markets. This strategy should help boost Coinbase’s earnings growth while reducing its volatility, he added. “While crypto prices, trading volume & sentiment will remain key contributors to the firm’s financial results, we see the firm’s diversification efforts and organic growth potential as helping to reduce the historical extreme swings in revenue & adjusted EBITDA,” the analyst wrote. Shares of Coinbase have added 2% this year.
