Rothschild Redburn Upgrades Coinbase (COIN) to Buy on Revenue Diversification

Coinbase Global, Inc. (NASDAQ:COIN) is one of the best performing NASDAQ stocks according to hedge funds. On October 3, Rothschild Redburn upgraded Coinbase stock from Neutral to Buy and kept the $417 price target. The firm based its decision on Coinbase’s successful revenue diversification.

The analysts noted that Coinbase’s percentage of revenues from retail trading fees dropped from about 90% in 2019–2021 to around 50% in 2025. And while retail transaction fees are expected to remain under pressure, Rothschild Redburn sees growth in retail trading volumes offsetting this pressure.

The analysts also project that institutional trading revenues will rise. This growth will be supported by increased institutional adoption of crypto, Coinbase’s investments in derivatives capabilities (including the acquisition of Deribit), and the company’s strong liquidity (it has a 2.13 current ratio), enabling it to pursue growth strategies.

Rothschild Redburn noted that Subscriptions and Services revenue is now a key growth driver. It grew at an approximate 53% compound annual growth rate (CAGR) from 2021 to 2025 (estimates). And stablecoin revenue, particularly from USDC, is also a major and growing component.

Coinbase Global, Inc. (NASDAQ:COIN) operates one of the world’s largest cryptocurrency exchanges. The company provides a platform for individuals, institutions, and developers to access the digital asset economy. It offers services that include buying, selling, and storing cryptocurrencies, as well as staking, lending, and payment solutions.

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Disclosure: None. This article is originally published at Insider Monkey.