Coinbase downgraded at Morgan Stanely; price target slashed 53% on weak earnings outlook

From the source

Analyst Michael Cyprys cited weak crypto trading activity and doubts about an earnings recovery. Morgan Stanley downgraded Coinbase COIN $140.81 to underweight from equalweight, warning that a slowdown in crypto trading and weaker revenue prospects could weigh on the exchange's earnings for years. “Confidence in the earnings recovery has deteriorated,” Morgan Stanley analyst Michael Cyprys wrote in a note on Monday. Alongside the downgrade, Cyprys slashed his price target to $120 from $258, citing weaker trading activity, a softer revenue outlook and uncertainty in crypto markets following the recent Binance hack . COIN is lower by 2.3% in early trading to $140.25, adding to last week’s 10% decline. The downgrade comes amid a difficult year for crypto markets, with sharp price swings and bouts of selling weighing on investor sentiment. Even when prices have recovered, trading activity has remained subdued, putting pressure on exchanges like Coinbase that rely on transaction fees for…

BestAIBroker analysis

• Finance-aware sentiment: negative (-0.75 on a -1 to +1 scale).
• Event classification: EARNINGS.
• Market importance score: 45/100, weighting entity relevance, source credibility, multi-outlet coverage and recency.
• Symbols referenced: COIN.