Coinbase (NASDAQ: COIN) was rallying higher during pre-market hours on Jan. 5 after analysts at Goldman Sachs expressed renewed confidence in the company.
This follows a year of underperformance for the stock.
Goldman analyst James Yaro said that this very underperformance has created an attractive entry point for investors.
Related: How Coinbase Became the Largest U.S. Cryptocurrency Exchange
Coinbase over 2025
Launched by Brian Armstrong and Fred Ehrsam in 2012, Coinbase operates the largest crypto exchange in the U.S. It went public in 2021 and made it to the S&P 500 index in May 2025.
However, Coinbase's past-year data shows the stock dropped by 8.04%, while year-to-date figures indicate a gain of 4.59%, according to Yahoo Finance.
Meanwhile, analysts have recently shown greater enthusiasm for the stock.
Clear Street analyst Owen Lau revealed his top three fintech ideas for 2026 — naming Coinbase alongside financial giants Nasdaq and S&P Global.
In his new outlook report, Lau described the crypto exchange as a central player in the pivot toward blockchain-based financial infrastructure.
Veteran investor Cathie Wood continues to acquire Coinbase shares through ARK Invest.
As of Jan. 5, the stock currently holds the following position among all the holdings of these ARK funds:
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ARKK :Fourth-largest- 5.24% ($365.8 million),
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ARKW :Seventh-largest- 4.7% ($99 million), and
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ARKF :Second-largest- 5.9% ($64 million).
More News:
Goldman Sachs issues new ratings
Goldman's Yaro said he expects the company's valuation to strengthen as Coinbase transitions from cyclical to structural growth, highlighting its strong business fundamentals, as per CNBC.
"COIN's scale and brand recognition continue to drive above-average revenue growth and market share gains, with a best-in-class [customer acquisition cost]... supplemented by recent product rollouts that make COIN more competitive generally, and specifically in new structural growth products,"he wrote.
The analyst expects more upside from the continued growth of Coinbase's core offerings, as well as from its expanding crypto infrastructure business.
"We are constructive on COIN's growing exposure to crypto infrastructure businesses through its subscription and services offerings, which should dampen earnings volatility over time,"Yaro added.
He noted that Coinbase's subscription and services segment, including custody, stablecoins, staking and prime brokerage, has expanded from under 5% of revenue in 2020 to nearly 40% by 2025 estimates. The firm expects continued robust growth of around 13% annually from 2025–2027, as the crypto ecosystem evolves beyond trading.
Goldman Sachs upgraded COIN to a "buy" rating from "neutral", raising its 12-month price target to $303 per share from $294 — implying a potential upside of 28%.
At press time, COIN was trading 4% higher in pre-market hours at $246.
This story was originally published by TheStreet on Jan 5, 2026, where it first appeared in the Trading News & Analysis section. Add TheStreet as a Preferred Source by clicking here.
