Goldman Sachs Upgrades Coinbase, Citing Strong Growth Outlook

At the start of the year, US investment bank Goldman Sachs sent a clear signal to the crypto market: Analysts upgraded Coinbase stock from “Neutral” to “Buy” and simultaneously raised their price target from $294 to $303. The stock market reacted promptly – Coinbase shares rose by around eight percent on Monday.

The reassessment is no coincidence. Goldman Sachs believes Coinbase is significantly better positioned after several product announcements than it was just a few months ago. The strategic expansion beyond pure crypto trading plays a key role in this assessment.

New products as game changers for Coinbase

According to analysts led by James Yaro, Coinbase has recently built a product portfolio that combines traditional brokerage services, digital banking, wealth management, and tokenization. This brings the platform closer to the offerings of modern neobrokers – combined with a strong crypto DNA.

It is precisely this mix that makes Coinbase more competitive, according to Goldman Sachs. While many of the new features are not entirely new to the market, they are now being offered for the first time within an integrated infrastructure. This increases customer loyalty and opens up additional revenue streams beyond the volatile trading business.

More stable revenues and structural growth

Historically, Coinbase relied heavily on transaction fees. However, around 40 percent of its revenue now comes from subscriptions and services. These include custody solutions, staking offers, and stablecoin revenue.

Analysts view this development positively. They expect average annual revenue growth of around twelve percent until 2027 – more than comparable competitors. Furthermore, the growing infrastructure share should stabilize earnings in the long term and make them less vulnerable to strong market fluctuations.

With around 9.5 million monthly active users and a share of about five percent of the global spot trading volume in 2025, Coinbase has clear economies of scale and a strong brand, according to Goldman Sachs.

The positive analyst comment also coincided with a recovery in the crypto market. Bitcoin climbed above $94,000 at one point, reaching its highest level in over a month. Other crypto stocks also benefited from the improved sentiment.

Goldman Sachs lowered eToro’s price

While Coinbase was upgraded, eToro suffered the opposite fate. Goldman Sachs lowered its price target from $48 to $39 and downgraded the stock to “Neutral.” The analysts cited the difficult relaunch in the US market as the primary reason, where eToro’s offerings heavily overlap with those of its competitors.

While Goldman Sachs remains optimistic about eToro in the long term, it sees significantly better opportunities for Coinbase in the short term. For investors, this is further evidence that those providers in the crypto sector who think beyond mere trading are increasingly gaining ground.

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