Bernstein stated that cryptocurrency-related stocks are currently trading at a "significant discount" after a broad sell-off, with valuations reflecting weak short-term market sentiment rather than long-term growth potential. The report noted that stocks related to digital asset infrastructure (including exchanges, brokerage firms, and tokenization platforms) are currently about 60% lower than their recent highs, despite their underlying businesses continuing to expand in markets such as stablecoins, derivatives, prediction markets, and tokenized real-world assets. This view echoes the firm's recent stance that part of the cryptocurrency stock sell-off, including concerns about Circle related to US regulation, may have overreacted to fundamentals. Bernstein maintained its "outperform" rating on Coinbase but lowered its price target for CRCL to $330 from $440. Despite a decline in trading volume in the first quarter, analysts expect earnings growth to remain stable. They also predict revenue will grow at a CAGR of approximately 26% through 2027. Bernstein believes stablecoins play a major role, with Coinbase accounting for roughly half of Circle USDC's revenue, while derivatives and new products are beginning to contribute more to this mix. (The Block)
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