Morgan Stanley Initiates Coverage on Coinbase with Equal Weight Rating
On September 10, Morgan Stanley initiated coverage of Coinbase Global (COIN) for the first time since its public listing. The bank assigned an 'Equal Weight' rating and a $250 price target, highlighting Coinbase's expansion beyond spot crypto trading into financial infrastructure services such as equities, commodities, prediction markets, tokenized assets, custody solutions, and stablecoin partnerships. Morgan Stanley emphasized that 88% of Coinbase’s second-quarter revenue came from sources other than Bitcoin spot trading. The firm noted the company's diversification strategy is reflected in its growing market share for crypto trading (10.3%) and a significant increase in prediction-market contracts, which rose by 106%. Subscription and services now account for nearly half of Coinbase’s net revenue. Coinbase has also filed with the SEC to offer equity perpetuals—derivative contracts tracking stocks without expiration—which would require CFTC approval before launch. The stock currently trades around $175, implying a potential 43% upside from Morgan Stanley's target.
Topics: Coinbase Global coverage initiation crypto stock Morgan Stanley