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Piper Sandler Downgrades Coinbase Stock, Predicts Price Drop of Over 20%
Renowned investment bank Piper Sandler has downgraded the rating of Coinbase shares (COIN) from “Overvalued” to “Neutral”. Trading volumes are expected to hit a two-year low in the second quarter. Analysts are raising concerns about Coinbase's future revenue despite its price rising following Bitcoin spot ETF applications. Piper Sandler predicts a decline of over 20% for the stock. The investment bank's latest price target is $60. Piper Sandler analyst Patrick Moley emphasized that the uncertainty surrounding Coinbase makes it difficult to predict future earnings. This results, among other things, from the United States' tough push against cryptocurrencies, as this...
Piper Sandler Downgrades Coinbase Stock, Predicts Price Drop of Over 20%
Renowned investment bank Piper Sandler has downgraded the rating of Coinbase shares (COIN) from “Overvalued” to “Neutral”. Trading volumes are expected to hit a two-year low in the second quarter.
Analysts are raising concerns about Coinbase's future revenue despite its price rising following Bitcoin spot ETF applications. Piper Sandler predicts a decline of over 20% for the stock. The investment bank's latest price target is $60.
Piper Sandler analyst Patrick Moley emphasized that the uncertainty surrounding Coinbase makes it difficult to predict future earnings. This results, among other things, from the United States' tough push against cryptocurrencies, as this market is the largest for the stock exchange. The Securities and Exchange Commission (SEC) has also filed a lawsuit against Coinbase, accusing the company of operating as an unregistered broker.
Although Bitcoin has risen over 80% in 2023, Coinbase shares have gained more than 140%. This rally was fueled, among other things, by Bitcoin spot ETF applications from major asset managers such as BlackRock. Still, Moley is concerned about the exchange's trading volume. He emphasizes that rising crypto prices have not translated into increased trading volumes for Coinbase in recent quarters and the timing of approval for a spot Bitcoin ETF is uncertain.
Piper Sandler analysts therefore expect a decline in trading volume. Berenberg Capital even assumes that the COIN price will fall by 50% to around USD 39, among other things due to regulatory uncertainty. The fact that the stock is approaching key resistance at around $85 confirms this forecast price movement.
Coinbase stock trading volume is illustrated by a chart showing sideways movement between $85 and $50 in 2023. Given all of this information, Piper Sandler recommends keeping a neutral rating on Coinbase stock at this time.
Source: https://cnews24.ru/uploads/7fe/7fe7cee60334de5be7ce460db2fcad4d0d2685b0.webp