Morgan Stanley Cuts Coinbase Price Target 53% as Earnings Outlook Weakens

Morgan Stanley cut its price target for Coinbase by 53.5% and downgraded the stock to Underweight, citing weak crypto trading and doubts about an earnings recovery.

The target dropped from $258 to $120, a reduction of $138 per share. The rating change moved Coinbase from Equal-weight to Underweight, signaling a more negative view of the company’s prospects.

Morgan Stanley analyst Michael Cyprys cited weaker trading activity, a softer revenue outlook and uncertainty about whether earnings will rebound. Coinbase’s quarterly results provide context for the trading concern. For the quarter ended Sept. 30, the company recorded $1.2 billion in net revenue, down from $1.8 billion a year earlier.

Transaction revenue totaled $590.2 million, down 44% year over year. Overall net revenue also declined over that period, while transaction revenue fell more sharply.