Morgan Stanley Slashes Coinbase Price Target by More Than Half After Weak Earnings and Binance Hack

Morgan Stanley turned bearish on Coinbase on Monday, with analyst Michael Cyprys lowering his target from $258 to $120, a drop of roughly 53%. He pointed to recent trading trends, a softer revenue outlook and uncertainty across the crypto market after Binance lost $6.3 billion to hackers. The bank still counts Coinbase among the strongest players in the industry, but it now expects profits to rebuild at a slower pace than it first forecast, which adds pressure on the share price.

Coinbase Q3 Earnings Results

The downgrade follows the company’s third quarter report on Oct. 29, which showed net revenue falling about 34% from a year earlier to $1.16 billion. Net income reached $719 million, mostly thanks to gains on its crypto investments, while adjusted net income was only $78 million.

Crypto Stocks Selloff After the Binance Hack

Coinbase shares dropped more than 13% in midday trading on Friday as earnings landed alongside the fallout from the Binance breach. Circle lost over 9% and Strategy slid about 8% in the same session. The slide continued Monday, with Coinbase down more than 3% to around $137 at the time of writing.