Analyst Michael Cyprys more than halved his target on Coinbase, citing weak trading trends and fading hopes for an earnings rebound
Morgan Stanley sharply lowered its outlook for Coinbase, warning that weaker trading activity and uncertainty following the Binance hack could delay the exchange’s expected earnings recovery.
The bank cut its rating to underweight from equal weight and slashed its price target from $258 to $120, implying a 16% decline from Friday’s close.
Analyst Michael Cyprys said Coinbase’s October trading pace had weakened, with transaction revenue through Oct. 25 reaching about $165 million. That points to fourth-quarter transaction revenue of roughly $607 million, 11% below the $685 million consensus estimate.
Morgan Stanley also reduced its 2027 revenue forecast by 28% and its adjusted EBITDA estimate by 47%, as it reassessed expectations for a rebound in crypto prices, retail activity and product adoption.
Coinbase shares have lost about 22% over the past month. The downgrade stands apart from the broader analyst consensus, with 26 of 41 analysts maintaining buy or strong buy ratings and 13 holding a neutral stance, according to LSEG.
