JPMorgan Maintains Neutral Rating for Coinbase

JPMorgan analysts have retained their neutral rating for Coinbase, setting a December 2025 price target of $196, despite the company's recent third-quarter results falling short of expectations.

> "Although overall results fell short of expectations, we see Coinbase continuing to execute in emerging areas of its business, welcoming potential avenues of future growth. We continue to believe in the crypto-ecosystem and see Coinbase as a leading intermediary, so we maintain our Neutral rating and Dec-2025 price target of $196," wrote JPMorgan analysts Kenneth B. Worthington, Michael Cho, Alexander Bernstein, and Madeline Daleiden in a note on Friday.

On Wednesday, Coinbase reported net income of $75 million for the third quarter, missing the Bloomberg analyst target of $112.2 million. While the company’s net revenue and net income increased year-on-year due to lower crypto prices last year, key earnings figures declined compared to the previous quarter. For instance, net revenue for Q3 amounted to $1.13 billion, down from $1.38 billion in the previous quarter.

Coinbase Continues to Execute on Long-Term Plans

Despite disappointing results, analysts noted Coinbase's successful execution of long-term plans designed to make crypto more utilitarian through Base, stablecoins, and wallets, while also pursuing regulatory clarity and maintaining profitability in all markets.

> "Base continues to be a leading layer 2 with roughly over $2.7 billion in TVL fostering scalability for lower and cheaper transaction fees," they added.

The analysts praised Coinbase's cost-cutting initiatives, believing they have contributed to a sustainable business model. They expressed optimism about the crypto landscape, particularly as U.S. political attitudes become more favorable towards cryptocurrency regulation.

Alongside its earnings results, Coinbase announced a share buyback program, demonstrating confidence in its operations. The board has authorized a $1 billion share repurchase program, with repurchases depending on market conditions.

JPMorgan's $196 price target is based on a "normalized earnings" model, assuming active trading in the crypto market. The analysts estimate that Coinbase will generate annual earnings of about $4.91 per share and apply a 40x earnings multiple, aligning with valuations for innovative financial firms.

As of the latest updates, Coinbase shares are priced at $180.63, showing a 0.77% increase in the last 24 hours, after trading above the $200 mark before Wednesday's earnings release.