Investment bank Bernstein has initiated coverage of Coinbase Global (COIN, Financial) with an "Outperform" rating. Analyst Gautam Chhugani believes the cryptocurrency exchange will benefit from the U.S. government's ambition to establish the country as a global cryptocurrency hub.
Chhugani notes that while some investors are concerned about increasing competition and fee pressures, they overlook the significant expansion of the total addressable market (TAM) as the global crypto market shifts back to the U.S. Coinbase remains a dominant player in the U.S., holding over $400 billion in assets and approximately 10 million active users, capturing about 66% of the market share.
Chhugani estimates Coinbase's earnings per share (EPS) in the cryptocurrency sector will grow at an annual compound rate of about 38%, surpassing 2025 EPS consensus by 30% and 2026 EPS consensus by 61%. He adds that the strong bull market and the rising dominance of the U.S. onshore market are expected to offset any competitive market share and pricing pressures.
Additionally, the analyst anticipates Coinbase's non-trading revenue to grow at a compound annual growth rate of approximately 31% between 2024 and 2026, providing stability against the cyclical nature of trading revenues.
