Strategic Transformation Amid Market Downturn
Despite ongoing market turbulence, renowned analyst Mark Palmer's latest report highlights significant progress in the crypto platform's strategic transformation. While acknowledging industry-wide challenges, the analyst reduced FY2026 EPS forecast by 21% to $5.34 and price target from $421 to $267, yet maintains a buy rating.
Diversification Strategy Gains Momentum
Notably, the platform's revenue composition is undergoing substantial changes. Explosive growth in derivatives trading revenue and record stablecoin reserves demonstrate strong operational performance. Particularly encouraging is the 43% net revenue contribution from subscription and services, signaling a successful transition toward sustainable income streams.
- 12 products now generate over $100M annualized revenue
- Coinbase One subscriber base approaching 1 million
- New business verticals include stock trading and commodities
Long-Term Potential Recognized
While near-term financials face headwinds, the analysis suggests current valuation already prices in market pessimism. Based on the updated target price, there remains 60% upside potential from current levels, reflecting institutional confidence in the 'full-service exchange' transformation. With continuous product expansion, the platform is building a more resilient business ecosystem.