Add as a preferred source on GoogleMorgan Stanley Downgrades Coinbase to Underweight, Cuts Target to $120
The bank also reduced its 2027 and 2028 revenue and adjusted EBITDA forecasts, citing weak trading and a softer outlook.
Morgan Stanley downgraded Coinbase (COIN) to Underweight from Equal Weight on Nov. 2, setting a $120 price target as it lowered its earnings outlook for the crypto exchange.
Analyst Michael Cyprys cut the target from $258. The new figure is below Coinbase’s $143.54 closing price on Oct. 30. The bank reduced its 2027 revenue estimate by 28% and its 2028 estimate by 18%.
Its adjusted EBITDA forecasts fell 47% for 2027 and 25% for 2028. Morgan Stanley’s model now puts normalized 2028 EBITDA at $2.4 billion, 14% below its 2025 level.
The bank also lowered the EBITDA multiple in its valuation model to 12 times from 20 times. With both its earnings estimates and valuation multiple reduced, Morgan Stanley’s target moved down to $120.
Morgan Stanley pointed to weak trading activity and a less favorable revenue outlook. Trading affects Coinbase’s exchange revenue and plays a significant role in how investors value the company.
Coinbase reported third-quarter earnings on Oct. 30, and several other banks lowered their price targets in late October. Morgan Stanley views Coinbase’s wider range of products as a support for its market position, while flagging risks to earnings and valuation.