Goldman Sachs Upgrades Coinbase, Downgrades eToro—Here’s Why

Goldman Sachs analysts upgraded Coinbase to “Buy” from “Neutral” on Monday, arguing that products unveiled by the exchange last month are making it more competitive.

Although Coinbase’s recent embrace of prediction markets showcased efforts to expand into growth areas, the analysts, led by James Yaro, described the addition of services already offered by some of Coinbase’s competitors as among the most significant.

“COIN’s recent new products across traditional brokerage, digital consumer and business banking, digital wealth, and tokenization make it substantially more competitive against neo brokers who already offer the full suite of traditional and crypto products,” the analysts wrote.

Yaro’s team raised their price target for Coinbase to $303 from $294. Coinbase shares rose 8% on Monday to $255, according to Yahoo Finance. The jump came as Bitcoin climbed above $94,000 and hit its highest point in over a month, according to CoinGecko.

In terms of annual revenue through 2027, the analysts forecast a compound annual growth rate of 12% for Coinbase compared to 8% for its peers. They added that Coinbase’s growing exposure to infrastructure businesses could make its earnings less volatile.

The analysts attributed above-average revenue growth to Coinbase’s scale and brand recognition, noting that it has around 9.5 million monthly transacting users. At the same time, Coinbase accounted for 5% of total global spot crypto trading volume in 2025.

Historically, Coinbase has derived a majority of its revenue from transaction fees, but the analysts noted that around 40% of its money now comes from subscriptions and services. That segment includes its custody and staking businesses, as well as income from stablecoins.

“We see an attractive entry point for COIN, and higher valuation over time as it shifts from cyclical to structural growth.” the analysts added.

When Coinbase announced last month that it was rolling out traditional stock trading to customers, the company described it as a precursor to tokenization. At the same time, the company introduced a service to help other firms issue digital representations of securities.

Aside from Coinbase, the analysts signaled that they remain positive on Robinhood, Interactive Brokers, and Figure Technologies as crypto-related firms. They downgraded eToro to “Neutral” from “Buy,” while lowering their price target to $39 from $48.

The analysts said eToro’s renewed expansion in the U.S. could be challenging, given the similarities between its offerings and competitors. Still, they see the company’s long-term growth trajectory as favorable, considering its foothold in European crypto markets.