Coinbase Hit with 50% Price Target Cut as Post-Earnings Rout Deepens
Slowing trading activity and fallout from the Binance hack are clouding Coinbase’s revenue prospects, prompting Morgan Stanley to lower its rating on the stock.
Investment bank Morgan Stanley turned bearish on Coinbase (COIN) on Monday, cutting its price target from $258 to $120, a cut of about 53%. This reduction was attributed to recent trading trends, a softer revenue outlook, and uncertainty in the crypto market following the $6.3 billion Binance hack.
The bank still considers Coinbase one of the strongest competitors in crypto but expects profits to recover more slowly than previously anticipated, putting further pressure on its share price.
The downgrade comes days after Coinbase reported a roughly 34% year-over-year decline in third-quarter net revenue to $1.16 billion. The exchange posted $719 million in net income, driven by cryptocurrency investment gains, while adjusted net income was $78 million.
The company’s earnings sparked a selloff in crypto-linked stocks on Friday, with Coinbase shares falling over 13%. Circle shares declined more than 9%, and Stratify fell around 8%.
Coinbase shares continued their losses on Monday, dropping over 3.3% to $138 at the time of writing, according to Yahoo Finance data.
Source: Yahoo Finance
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