Morgan Stanley slashes Coinbase price target by 50% amid post-earnings selloff

Coinbase price target — Investment bank Morgan Stanley has turned bearish on Coinbase, cutting its price target for the exchange’s stock by more than half as a post-earnings rout deepens.

Analyst Michael Cyprys lowered the price target from $258 to $120, a reduction of approximately 53%, according to a report on Monday. The downgrade cites slowing trading activity, a softer revenue outlook, and market uncertainty following the recent $6.3 billion Binance hack.

The bank still views Coinbase as one of the strongest competitors in the crypto sector but now expects its profits to recover more slowly than previously forecast. The move follows Coinbase’s third-quarter earnings report last week, which showed a roughly 34% year-over-year decline in net revenue to $1.16 billion.

Coinbase shares fell more than 13% last Friday following the earnings release and extended losses on Monday, dropping over 3.3% to $138. The selloff also affected other crypto-linked stocks, with Circle and Strategy shares declining sharply.