JPMorgan Cuts Coinbase Price Target, Expects Earnings Pressure

JPMorgan Adjusts Coinbase Outlook

JPMorgan recently lowered Coinbase's price target from $399 to $290, citing declining crypto trading volumes, weakening asset prices, and a slowdown in USDC growth.

Nevertheless, the firm maintains an Overweight rating on the company.

Analyst Insights

Analysts forecast Coinbase's adjusted EBITDA for the current quarter to fall to approximately $734 million, driven by reduced spot trading activity and weaker stablecoin-related revenues.

JPMorgan estimates quarterly spot trading volume at around $263 billion and stablecoin revenue at $312 million.

While the acquisition of Deribit brings in additional income, the overall bearish market conditions continue to pressure earnings.

Other Institutional Views

• Institutions like Barclays and Compass Point have also adopted a more cautious stance.
• They expect retail trading, blockchain rewards, and subscription and services revenue to fall short of expectations.
• These firms believe Coinbase's performance remains highly correlated with the broader crypto market trends.