Benchmark analyst Mark Palmer has reduced Coinbase's (COIN) price target by 37% to $267, citing challenging conditions in the crypto market. Despite this adjustment, Palmer maintains a "Buy" rating on the stock. The analyst also lowered his 2026 fiscal year EPS forecast by 21% to $5.34, highlighting that first-half expectations are below market consensus. Palmer notes that while short-term financial metrics are under pressure, Coinbase's business model is diversifying. The company has seen a surge in derivatives revenue, record stablecoin balances, and subscription and services revenue now make up 43% of net revenue. Coinbase boasts 12 products generating over $100 million annually, with nearly 1 million paid users of Coinbase One. Palmer believes that despite current market volatility, Coinbase is evolving into a "one-stop exchange" with ventures into stock trading, prediction markets, and commodities trading. The revised price target suggests a potential 60% upside from the current price of approximately $164.