Institutional investors are once again turning their attention to the stocks of public crypto companies. Amid a revival in the digital asset market, two leading Wall Street banks have revised their target prices upward while maintaining a "buy" rating. This signals a shift in sentiment after a period of caution that dominated the market in the first half of the summer.
Goldman sees potential in Coinbase's diversification
Goldman Sachs analysts raised their price target for Coinbase (COIN) shares from $173 to $196, implying a growth potential of approximately 13% from the previous level. The key driver of the revision was not only the overall improvement in market conditions but also the exchange's progress in new business areas. I highlight two important factors: steady growth in the derivatives segment and the development of prediction markets. These areas diversify the company's revenue, reducing its dependence on spot trading volatility.
At the close of the last session, COIN shares were trading at $187.16, up 4.28%. Goldman's new target is approximately 5% above the current market price. Notably, back in March the bank set a target level of $235, but later lowered it, reflecting the company's weak quarterly results at the time. Now we are seeing a reversal in the opposite direction.
Canaccord sharply raises Strategy's valuation
An even more aggressive revision occurred for Strategy (MSTR) shares. Canaccord Genuity raised its price target from $130 to $175 — the most significant jump in recent months. The new valuation implies growth of approximately 38% relative to Tuesday's closing price ($126.83). The bank's analysts describe the current situation for MSTR as a "breath of fresh air," emphasizing the improvement in fundamental indicators over the past two weeks.
Market dynamics fully confirm these optimistic forecasts. Since August 19, MSTR shares have risen 34.66%, while COIN has gained 27.14% over the same period. This is an impressive rally that contrasts with the summer stagnation, when on July 31 Wall Street analysts downgraded their forecasts for Coinbase after a third consecutive report that came in weaker than market expectations.
Both revised estimates imply further growth compared to current levels. The question is whether September can sustain the momentum of last week. In my view, the renewed interest of institutions in crypto stocks is a strong bullish signal, but the market remains extremely sensitive to macroeconomic data and the dynamics of bitcoin itself. Investors should closely monitor trading volumes and capital flows in the coming weeks.