JPMorgan Upgrades Coinbase Stock Rating On Base, USDC Potential

Coinbase shares soared after JPMorgan Chase upgraded the company’s stock rating to “overweight” on the monetization potential of the Base ￰0￱ bank also highlighted changes to Coinbase’s USDC rewards and new Base-integrated DEX features driving profits and risk-management ￰1￱ Upgrades Coinbase Stock Coinbase shares (COIN) rallied on Friday after JPMorgan Chase upgraded the exchange, highlighting the potential of new monetization opportunities associated with its Base Network and USDC payout ￰2￱ lifted their rating of Coinbase stock from “neutral” to “overweight” and also raised their price target to $404, a 15% upside from current ￰3￱ to JPMorgan, Coinbase is leaning into its Base Layer-2 technology and exploring ways to capture value from the nascent platform’s ￰4￱ bank also predicted that the launch of a Base token could present Coinbase with a $12 billion to $34 billion opportunity, putting Coinbase’s retained share between $4 billion and $12 ￰5￱ analysts also noted that the Base token’s distribution would likely favor developers, validators, and the larger Base ￰6￱ also highlighted Coinbase’s integration of a DEX aggregator within the Base app to hedge against the growth of decentralized ￰7￱ Rewards JPMorgan also highlighted margin expansion potential due to changes in Coinbase’s USDC rewards ￰8￱ to the bank’s analysts, Coinbase may reduce interest rewards for most users, offering them primarily to Coinbase One ￰9￱ bank believes such a move could add around $374 million in annual earnings at current USDC interest rates and ￰10￱ shares rallied over 9% following the news, reaching $353.

The stock’s value is up about 42% year-to-date, taking the company’s market capitalization past $90 ￰11￱ Turns To Coinbase Earnings Coinbase will report its third-quarter earnings results on October ￰12￱ to a report by Zacks Investment Research, analysts expect the company to post earnings of $1.06 per share, a 71% increase year-over-year, and revenue of $1.74 billion, a 44.1% increase from the same quarter last ￰13￱ reported a mixed second quarter, with the exchange missing earnings expectations. However, it achieved several operational milestones, including higher stablecoin revenue and rising stablecoin ￰14￱ has also been focusing on its subscription and services ￰15￱ expect the segment to contribute between $665 million and $745 million in the third ￰16￱ exchange also highlighted several key developments during the ￰17￱ include the approval of the GENIUS ￰18￱ act established a clear regulatory framework in the US for stablecoin adoption.

Disclaimer: This article is provided for informational purposes ￰19￱ is not offered or intended to be used as legal, tax, investment, financial, or other advice