Morgan Stanley downgrades Coinbase to Underweight, slashes price target from $258 to $120

Odaily reports: Morgan Stanley has downgraded Coinbase (COIN) stock from "Equal-Weight" to "Underweight" and sharply cut its price target from $258 to $120, implying roughly 16% downside from last Friday's closing price.

Analyst Michael Cyprys said in a client note released Monday that Coinbase's recent weakening trading trends, softer forward revenue outlook, and the uncertain crypto market outlook make its earnings recovery expectations harder to achieve. As of October 25, Coinbase's Q4 crypto trading revenue was approximately $165 million, which annualizes to about $607 million at the current pace, roughly 11% below the market consensus of $685 million. In addition, Morgan Stanley cut its 2027 revenue forecast for Coinbase by 28% and its adjusted EBITDA forecast by 47%. (CNBC)