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Morgan Stanley downgrades Coinbase and cuts its price target by 53% to $120, doubting a quick earnings recovery
⚪NeutralAn analyst downgrade weighs on Coinbase stock, but it is a view on one company's earnings rather than news that directly affects any coin.News sentiment, not financial advice. It reflects the likely impact of this news, not a price prediction.
Summary
Morgan Stanley downgraded Coinbase (COIN) on Monday and cut its price target by more than half, CoinDesk and Cointelegraph reported.
Analyst Michael Cyprys lowered the target from $258 to $120, a cut of about 53%, citing weak crypto trading activity, a softer revenue outlook, doubts about an earnings recovery and uncertainty after Binance's hack, according to the two outlets.
Cointelegraph said the bank still sees Coinbase as one of the strongest competitors in crypto but expects its profits to recover more slowly than it previously forecast.
The downgrade follows Coinbase's third-quarter report, in which net revenue fell about 34% year over year to $1.16 billion, per Cointelegraph.
Key facts
- Analyst Michael Cyprys cited weak crypto trading activity and doubts about an earnings recovery.
- Coinbase posted $719 million in third-quarter net income, largely from gains on crypto investments, while adjusted net income was $78 million.
- Coinbase shares fell more than 13% in midday trading Friday after its earnings and were down more than 3.3% at $138 on Monday at the time Cointelegraph wrote, citing Yahoo Finance.
- Cointelegraph's headline describes the cut as 50%, while its own figures ($258 to $120) and CoinDesk put it at about 53%.