JPMorgan analysts maintain a neutral rating for Coinbase shares and a price target of $196 for December 2025.
Despite the company’s third-quarter results falling short of expectations, JPMorgan analysts have maintained their neutral rating for Coinbase and established a price target of $196 for December 2025.
“Despite the fact that the overall results were below expectations, we anticipate that Coinbase will continue to execute in emergent areas of its business, embracing potential opportunities for future growth. Kenneth B. Worthington, Michael Cho, Alexander Bernstein, and Madeline Daleiden, analysts at JPMorgan, wrote in a note on Friday that they continue to be believers in the crypto-ecosystem and see Coinbase as a prominent intermediary.” Consequently, they maintain their Neutral rating and a price target of $196 for Dec-2025.
Coinbase disclosed its third-quarter results on Wednesday, which indicated that its net income was $75 million, which fell short of the anticipated $112.2 million target that Bloomberg analysts had identified.
Despite the fact that the company’s net revenue, net income, and adjusted EBITDA increased year-over-year due to the lower levels of crypto prices last year, some of its important earnings figures decreased in comparison to the previous quarter. For instance, in the third quarter, it reported a net revenue of $1.13 billion, which is a decrease from the previous quarter’s figure of $1.38 billion.
The analysts stated that Coinbase executed well on its plans to make crypto more of a utility through Base, stablecoins, and wallets, pursue regulatory clarity, and remain profitable across all markets, despite the disappointing results.
The analysts also praised Coinbase’s cost-cutting measures, which they believe have led to a more sustainable business model. In light of the political environment in the United States, which is becoming increasingly favorable toward cryptocurrency regulation, they remain optimistic about the crypto landscape.
Coinbase also launched a share buyback program in conjunction with its most recent earnings report, which serves as an additional indication of the company’s confidence in its operations. The cryptocurrency exchange announced that its board of directors has approved a $1 billion share repurchase program. It also stated that the timetable and scope of any repurchases will be contingent upon market conditions.
JPMorgan’s $196 price target is based on a “normalized earnings” approach that presupposes active trading in the crypto market. JPMorgan anticipates that Coinbase will generate annual earnings of approximately $4.91 per share and applies a 40x earnings multiple, which is typical of valuations for innovative financial firms.
The price of Coinbase shares is $180.63 at the time of writing, which represents a 0.77% increase in the past 24 hours. The stock was trading above the $200 mark prior to the release on Wednesday afternoon.
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