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

BlockBeats message, March 30, Bernstein said that after a broad-based drop, trading prices for crypto-related stocks are at a「significant discount」. The current valuations reflect weak short-term sentiment rather than long-term growth potential.

In a report to clients on Monday, the research and brokerage firm pointed out 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 tokenization of real-world assets.

Bernstein expects the current weak trend to persist until the release of first-quarter earnings, before stabilizing. Given this, analysts believe the first-quarter earnings season may form a bottom.

This view continues the firm’s recent stance that some of the sell-off in crypto stocks—including those related to Circle, driven by concerns stemming from U.S. regulation—may have already diverged too far from fundamentals.

Bernstein maintains a「outperform the market」 rating on Coinbase (ticker code: CCOIN0%), but cuts its target share price from the prior $440 to $330.

Although first-quarter trading volumes are soft, analysts expect earnings growth to remain solid. They also forecast that by 2027, its revenue will expand at an approximately 26% compound annual growth rate.

Bernstein believes stablecoins will shoulder most of the growth responsibility. Coinbase accounts for about half of Circle’s USDC revenue, while derivatives and newer products are beginning 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.

The assertion echoes Bernstein’s earlier view that Coinbase’s stock is「so cheap it’s hard to sell」, when the firm highlighted that rising trading volumes and product expansion would create substantial upside.