Citi Lowers Coinbase Price Target by 41%
Citigroup has reduced its price target for Coinbase (COIN) stock from $400 to $235, a drop of 41%, citing weak trading volumes and lower-than-expected performance in the previous quarter. Despite this cut, Citi maintains a 'buy' rating on COIN shares. Analyst Peter Christiansen noted that Q2 is expected to be a low point for Coinbase due to subdued spot trading activity. Analysts across other firms have also adjusted their expectations downward, with Clear Street lowering its target and Rosenblatt aligning closely with Citi's revised estimate. Wall Street anticipates Q2 revenue of around $1.3 billion, down from the previous quarter’s $1.41 billion. However, Coinbase may find some stability in subscription-based services like USDC interest income. Market sentiment remains mixed ahead of earnings. While long-term positioning has become slightly more bullish, short-term traders are hedging with put options. Institutional buying activity, as measured by Chaikin Money Flow, suggests continued confidence despite the stock’s recent decline.
Topics: buy rating maintained Coinbase earnings price target cut stock analysis