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.
Coinbase's stock has been hit with a 50% price target cut after Morgan Stanley downgraded its rating on the cryptocurrency exchange. Analyst Michael Cyprys reduced the stock's price target from $258 to $120, a cut of about 53%. This downgrade was prompted by slowing trading activity and fallout from the Binance hack, which has clouded Coinbase's revenue prospects.
The investment bank cited recent trading trends and a softer revenue outlook, warning that Coinbase's profits could recover more slowly than previously expected. Despite this, Morgan Stanley still views Coinbase as one of the strongest competitors in crypto, but the downgrade still puts further pressure on its share price. The downgrade follows Coinbase's report of a roughly 34% year-over-year decline in third-quarter net revenue to $1.16 billion, with net income of $719 million largely driven by gains on cryptocurrency investments.
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