Benchmark cuts Coinbase target to $267 from $421, maintains Buy rating

Benchmark analyst Mark Palmer lowered Coinbase's (COIN) price target to $267 from $421, a 37% reduction, while maintaining a Buy rating following the company's fourth-quarter earnings, The Block reports as cited by ChainCatcher. Coinbase reported Q4 2025 net revenue of $1.71 billion, down 5% sequentially, and a GAAP net loss of $6.67 billion, driven primarily by $7.18 billion in unrealized losses on its crypto asset portfolio and $3.95 billion in losses from strategic investments. Palmer cut his FY2026 EPS forecast by 21% to $5.34 and set a Q1 2026 EPS estimate of $0.96, about 19% below consensus, noting the new target implies roughly 60% upside based on a current stock price near $164. The analyst said the business mix is becoming more diversified and resilient, with institutional trading revenue up 37% sequentially to $185 million, supported by the August acquisition of derivatives platform Deribit for $2.9 billion; stablecoin revenue rose 3% sequentially to $364 million with USDC average balance at an all-time high; subscription and services revenue reached $727.4 million, about 43% of net revenue, and full-year subscription and services revenue grew 23% year over year to $2.8 billion; the company expects Q1 2026 subscription and services revenue of $550 million to $630 million and reports trading revenue through February 10 of approximately $420 million; it ended 2025 with $11.3 billion in cash, repurchased $1.7 billion of shares in Q4 and early February, and its board approved an additional $2 billion share repurchase authorization.