Wall Street’s confidence in Coinbase Global Inc. (COIN) continued to crumble
Analysts at Monness, Crespi, Hardt has slammed cryptocurrency giant Coinbase with a rather rare double downgrade. The stock of America’s leading cryptocurrency exchange has been slashed directly from “Buy” to “Sell.”
The firm cited “prolonged crypto market weakness” as the key reason behind the downgrade.
More pain?
The downgrade is particularly stinging because it does not foresee a speedy recovery for the embattled market.
Monness, Crespi, Hardt cut their forecasts for Coinbase’s revenue, EBITDA, and earnings per share (EPS). The firm expects the current market malaise to last for over a year.
Coinbase’s stock has already been hammered, but the firm believes that a 50% drop is not enough.
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Typically, a drop of that magnitude might tempt analysts to move to a neutral “Hold” stance.
However, Monness, Crespi, Hardt argues that the stock is still not cheap enough. The duration of the downturn is yet to be fully priced in by the market.
Is Wall Street giving up on Coinbase?
Coinbase Global Inc. is facing its most severe crisis of confidence on Wall Street since the 2022 bear market. Over the last 48 hours, a cascade of analyst downgrades and price target slashes has hit the stock
As reported by U.Today, Coinbase’s stock was recently hit hard by JPMorgan cutting its target to $290.
Compass Point also cut its target from $230 to $190, arguing that the stock had “decelerating momentum.”
In the meantime, Coinbase CEO Brian Armstrong is no longer among the top 500 richest people following the stock plunge.