REALITY CHECK | Morgan Stanley Cuts Coinbase Price Target by Over 50%

Morgan Stanley has downgraded Coinbase to underweight from equal-weight cutting its price target by 53% to $120 from $258 as weaker trading activity and uncertainty surrounding the cryptocurrency market cloud the exchange’s earnings outlook. Analyst, Michael Cyprys, the Managing Director of Equity Research at Morgan Stanley, said confidence in Coinbase’s earnings recovery had deteriorated citing subdued trading volumes, a softer revenue outlook, and concerns following the $6.3 billion Binance security breach. The downgrade comes after Coinbase reported third-quarter revenue of $1.22 billion, down 35% from a year earlier and 6% below Morgan Stanley’s estimates.

Source: BitKE