Morgan Stanley Rates Coinbase Equal-Weight Despite Positive Outlook on Its Future
Morgan Stanley has initiated coverage of Coinbase Global (COIN) with an Equal-weight rating and a $250 price target, implying about 40% upside from its recent closing price. Analyst Michael Cyprys noted that while the company's business is growing and diversifying, the stock still trades like it’s tied to Bitcoin volatility rather than long-term fundamentals. Cyprys highlighted Coinbase's potential in a bull case of $400 but warned about risks including retail crypto trading dependence and competition. The analyst also pointed out a similar upgrade for Robinhood (HOOD), where he upgraded the stock due to strong growth in its prediction markets business, contrasting with his cautious stance on Coinbase. The report outlines three key areas that could influence Coinbase’s future: regulatory clarity, diversification into new products like equities and tokenized assets, and competition over stablecoin revenue. The firm remains optimistic about Coinbase's long-term potential but is not yet convinced of its current valuation.
