Morgan Stanley Downgrades Coinbase to Underweight Following Binance Hack and Slowing Retail Activity

Morgan Stanley has downgraded Coinbase Global (COIN) from Equal-weight to Underweight, significantly slashing its price target from $258 to $120. The downgrade is driven by a deterioration in the bank's recovery thesis, specifically citing a sharp slowdown in retail crypto trading activity and a softer revenue outlook. While Coinbase was not directly involved in the recent $6.3 billion Binance hack, Morgan Stanley analysts suggest the incident has rattled retail traders, potentially leading to a broader market pullback. This sentiment is reflected in current transaction revenue trends, which are currently pacing below Wall Street expectations for the fourth quarter.

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