Bernstein: Crypto stocks are significantly undervalued, and COIN is basically "sold out."

Mars Finance news. On March 30, Bernstein said that after a broad-based selloff, trading prices for stocks related to crypto have “materially discounted,” and that current valuations reflect weak near-term sentiment rather than long-term growth potential. In a report to clients on Monday, the research and brokerage firm noted that stocks tied to digital-asset infrastructure—including trading venues, brokers, and tokenization platforms—are currently down about 60% from their recent highs, even as their underlying businesses continue to expand across markets such as stablecoins, derivatives, prediction markets, and tokenized real-world assets. Bernstein expects the current weak trend to persist until the release of first-quarter earnings, after which it may stabilize. Given this, analysts believe the first-quarter earnings season could form a bottom. This view builds on the firm’s recent stance that some of the selloff in crypto stocks—including those related to Circle, driven by concerns stemming from U.S. regulation—may already have gone too far away from the fundamentals. Bernstein maintains a “outperform the market” rating for Coinbase (ticker symbol: CCOIN0%), but lowered its target share price from $440 previously to $330. Despite weak first-quarter trading volumes, analysts expect earnings growth to remain solid. They also forecast that by 2027, its revenue will expand at an annual compound growth rate of about 26%. Bernstein believes stablecoins will shoulder most of the growth burden—Coinbase accounts for about half of Circle’s USDC revenue—while derivatives and newer products are starting to contribute more to the revenue mix. The report also emphasized that subscription and services revenue (including stablecoin revenue) provides a cushion against volatility in crypto prices, even though spot trading volumes remain cyclical. This conclusion echoes Bernstein’s earlier view that Coinbase’s stock is “cheap enough to be hard to sell,” when the firm highlighted that rising trading volumes and product expansion would create substantial upside potential.