Bernstein analysts issued a bold call this week declaring Coinbase as the most misunderstood crypto stock and predicting nearly 50% upside. The report raised Coinbase’s target to $510 up from $310 and maintained an “outperform” rating.

Analyst Gautam Chhugani said Wall Street has continued to overlook the real scale of Coinbase’s crypto business. The stock closed at $344.82 on Tuesday and the new target suggests strong investor gains. Gautam said Coinbase stands at the center of every major revenue stream in the crypto space and deserves more recognition.

Analyst Highlights Coinbase's Strength In Futures And Regulation Edge

Coinbase is the only crypto firm in the S&P 500 and it dominates U.S. crypto trading volumes. It also leads in institutional crypto services and operates the largest stablecoin business among exchanges. Coinbase recently acquired the biggest global crypto options exchange and it powers the fastest Ethereum-based blockchain used for tokenization.

Gautam rejected bearish views that say traditional brokers will hurt Coinbase’s position. He said new entrants do not offer the full product suite that Coinbase already has and that makes them less competitive in the long run. The report also pointed to two U.S. bills that could boost Coinbase. The GENIUS Act would regulate stablecoins and the CLARITY Act would bring broader crypto rules.

He said Coinbase’s entry into futures trading will open huge opportunities. Coinbase has already launched Bitcoin and Ethereum futures and plans to add perpetual futures which are in high demand globally. This market is barely tapped in the U.S. and could generate large revenue streams if Coinbase gains traction.

“Our internal model estimates Coinbase will generate $9.5 billion in revenue by 2025” Gautam said. 

That includes spot trading derivatives institutional flows and benefits from regulation. Following this report Coinbase shares rose 3.1% in premarket trading.