Why Top Analysts Are Doubling Down on Robinhood Over Coinbase—Even After Price Target Surges

Robinhood just outmaneuvered Coinbase—again. Here's why Wall Street's favorite crypto underdog keeps winning.

The Retail Advantage

While Coinbase chases institutional whales, Robinhood's frictionless mobile experience keeps minting retail traders—the lifeblood of crypto's bull runs.

Regulation Roulette

Coinbase's SEC battles drain resources while Robinhood's payment-for-order-flow model—love it or hate it—sidesteps regulatory landmines. A cynical but effective hedge.

The Bottom Line

When the next crypto winter hits, guess which platform's 'dumb money' users will keep trading through the dip? The one with dopamine-triggering confetti animations, obviously.

TLDR

• Mizuho Securities raised Coinbase target price from $217 to $267 but maintains neutral rating
• Coinbase Q2 consumer spot trading volume dropped 45% quarter-over-quarter
• July trading volumes showed a rebound according to Coinbase management
• Mizuho still prefers Robinhood over Coinbase for investment opportunities
• Coinbase stock trading at $297.87, above Mizuho’s new target price

Mizuho Securities increased its price target for Coinbase from $217 to $267 while maintaining a neutral rating on the stock. The adjustment comes after strong trading volumes returned in July following a weak second quarter performance.

The investment firm’s analysts cited improved market activity as the reason for the target increase. They noted that July volumes showed a rebound after disappointing quarterly results. Despite the higher target, Coinbase shares were trading at $297.87 in after-hours trading, above Mizuho’s new price goal.

Coinbase reported mixed second quarter earnings last week. Consumer spot trading volume fell 45% compared to the previous quarter. Total transaction revenue also declined 39% quarter-over-quarter during the same period.

The crypto exchange did show strength in profitability metrics. Net income reached $1.43 billion during the second quarter. This compares to $66 million in the previous quarter and just $36 million in the same period last year.

Trading volumes totaled $237 billion in Q2. This represents an increase from $226 billion during the second quarter of 2024. The year-over-year growth helped offset some concerns about quarterly declines.

Market Position Concerns

Mizuho analysts expressed preference for competitor Robinhood over Coinbase. They cited Robinhood’s more diversified business model as a key advantage. The firm also pointed to lower pricing and additional growth opportunities outside cryptocurrency trading.

The analysts expect Robinhood to gain market share from competitors like Coinbase. They believe the platform can expand internationally through tokenized U.S. securities offerings. This diversification strategy appeals to investors seeking broader exposure beyond crypto markets.

July Recovery Signs

Management highlighted transaction improvements reflecting better market conditions in July. This recovery helped justify Mizuho’s decision to raise the price target despite maintaining neutral sentiment. The analysts acknowledged that July volumes showed renewed strength after the weak second quarter.

The firm raised its fiscal year 2026 estimates based on the July volume recovery. They also factored in solid software-as-a-service revenue performance. These adjustments led to the $50 increase in the target price from previous levels.

Coinbase’s strong net income growth demonstrates the platform’s ability to generate profits during market volatility. The company achieved this despite facing volume pressures in consumer trading segments. Professional trading and other revenue streams helped support overall financial performance.