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JPMorgan analysts maintained their neutral rating on Coinbase shares, setting a target price of $196 for December 2025. Despite Coinbase’s third-quarter results falling below expectations, analysts noted that the company continues to pursue its long-term plans.
Analysts Kenneth B. Worthington, Michael Cho, Alexander Bernstein, and Madeline Daleiden commented, “While overall results missed expectations, we see Coinbase continuing to create growth opportunities in emerging areas of its business. We maintain our belief in the crypto ecosystem, and we view Coinbase as a leading intermediary, thus maintaining our neutral rating and December 2025 target price of $196.”
Coinbase reported net income of $75 million in its third-quarter results released on Wednesday, compared to Bloomberg analysts’ expectations of $112.2 million.
Some financial metrics, including net income, net profit, and adjusted EBITDA, showed year-over-year increases. However, certain core earnings elements declined compared to the previous quarter, despite low crypto prices last year. For instance, third-quarter net revenue was $1.13 billion, down from $1.38 billion in the previous quarter.
This chart presents four key financial indicators—revenue, earnings, free cash flow, and cash from operations—across the years, illustrating the company’s financial status.
Coinbase’s Long-Term Goals and Cost Reduction Strategies Praised
Despite weak results, analysts commended Coinbase’s efforts to make crypto more functional through Base, stablecoins, and wallet solutions, aligning with its long-term goals. Base, a prominent Layer-2 solution, enhances scalability with low-cost transaction fees and has reached a total value locked (TVL) of $2.7 billion.
Analysts also appreciated Coinbase’s cost-cutting measures, believing these strategies contribute to a more sustainable business model. Additionally, they noted that a more favorable regulatory environment for crypto in the U.S. is creating optimism in the sector.
Alongside its recent earnings report, Coinbase announced a $1 billion stock buyback program approved by the board, with repurchases to be made based on market conditions.
JPMorgan’s $196 target price is based on a “normalized earnings” approach, assuming active trading in the crypto market. JPMorgan projects Coinbase to generate approximately $4.91 in annual earnings per share, applying a 40x earnings multiplier in line with valuations of innovative financial firms.
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