Deutsche Bank issues first investment opinion on Coinbase…"Target $340, 40%% upside"

Deutsche Bank issued its first investment opinion on Coinbase, the largest U.S. crypto exchange, assigning a Buy rating and setting a target share price of $340. This implies about a 40% upside from the current price.

On the 17th (local time), The Block reported that Deutsche Bank, in its report, analyzed that Coinbase is shifting from a business structure centered on spot crypto trading to an 'everything exchange' that spans derivatives, stablecoins, and on-chain finance. The bank assessed that this strategy is moving beyond the conceptual stage and entering an actual execution phase.

Coinbase management has been unveiling plans since this summer for a one-stop on-chain platform that would allow trading not only crypto but also tokenized stocks and prediction markets. Deutsche Bank said the strategy could significantly expand Coinbase's total addressable market (TAM) after 2026.

This analysis came as Coinbase was expected to unveil new products related to prediction markets and tokenized stocks at a scheduled product showcase that day. Bloomberg previously reported that Coinbase views these areas as next-generation growth drivers. Deutsche Bank also judged that these new businesses could begin contributing meaningful revenue from 2026.

The report pointed to derivatives as a key upside factor. Deutsche Bank viewed Coinbase's acquisition of the options exchange Deribit and the launch of perpetual futures subject to U.S. Commodity Futures Trading Commission (CFTC) regulation as structural growth opportunities. It forecast that the share and revenue contribution of derivatives trading would gradually expand, centered on institutional investors.

Stablecoins and subscription services were also cited as major pillars. Deutsche Bank analyzed that increases in USDC balances on the Coinbase platform and expanded use of stablecoins in payments and on-chain activity would strengthen recurring revenue structures and reduce reliance on trading fee volatility.

On the cost side, it said that 2025 would still be a year with significant investment burdens, but that the most intensive spending phase has already passed. Deutsche Bank expects revenue growth to outpace cost increases from 2026, enabling gradual margin improvement, and forecasts adjusted EBITDA growth to exceed 20%.

Coinbase's share price is trading around $245, near a seven-month low amid a recent slowdown in the crypto market. Deutsche Bank said that this price adjustment does not fully reflect the profit potential of the new businesses that will ramp up after 2026.