Morgan Stanley Downgrades Coinbase to Underweight, Cuts Price Target to $120 From $258
Summary
- Morgan Stanley said it downgraded Coinbase to underweight and cut its price target to $120 from $258.
- It said Coinbase's fourth-quarter cryptocurrency trading revenue would reach $607 million if the current trend continues, about 11% below the market forecast.
- Morgan Stanley said it lowered its 2027 revenue forecast for Coinbase by 28% and its adjusted EBITDA estimate by 47%.
Forecast Trend Report by Period
Morgan Stanley sharply lowered its rating and price target on U.S. cryptocurrency exchange Coinbase (COIN).
Odaily reported on November 2 that Morgan Stanley downgraded Coinbase to underweight from equal-weight and cut its price target to $120 from $258. The new target is about 16% below last Friday's closing price.
Morgan Stanley analyst Michael Cyprys said weaker recent cryptocurrency trading activity, a softer revenue outlook and rising market uncertainty have reduced expectations for a rebound in Coinbase's earnings.
Coinbase's fourth-quarter cryptocurrency trading revenue totaled about $165 million through October 25. If the current trend continues, quarterly trading revenue would come to about $607 million, roughly 11% below the market forecast of $685 million.
Morgan Stanley also cut its 2027 revenue forecast for Coinbase by 28% and lowered its adjusted EBITDA estimate by 47%.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.