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• Infrastructure revenue, including Base and derivatives, is emerging as a potential buffer against trading volatility.
• A cheaper valuation and elevated short interest are central to the bull case, even as execution risks persist.

Bank of America upgraded Coinbase stock (NASDAQ: COIN) to a "buy" rating, arguing that a sharp pullback in the stock has overshadowed product momentum and major expansion avenues in the exchange’s addressable market.

In a note published Thursday, BofA set a $340 price target on Coinbase shares, implying roughly 38% upside from current levels of roughly $245, according to The Block price data. The bank pointed out that the stock has fallen about 40% from its July highs of around $420, even as Coinbase increased product velocity and expanded into new markets, adding that tax-loss selling pressure from late 2025 appears to be fading.

Coinbase shares have become "significantly cheaper" following the pullback, while short interest has roughly doubled year-over-year — a setup BofA analysts said could amplify upside if sentiment shifts. Derivatives, stablecoins, and institutional infrastructure were cited as potential offsets to volatility in retail trading volumes.

...read more at theblock.co