According to Odaily Odaily, several Wall Street investment banks, including JPMorgan and Canaccord, have recently lowered their target prices for Coinbase (COIN) stock due to its fourth-quarter earnings report falling short of market expectations.
JPMorgan stated that the weak crypto market and reduced trading activity dragged down trading volume and fee revenue. Despite this, the bank maintained its "overweight" rating on Coinbase, but lowered its price target from $290 to $252. Analysts pointed out that a 22% year-over-year increase in operating expenses and the shift of trading towards the lower-fee Advanced Trading and Coinbase One subscription services also put pressure on performance.
Meanwhile, brokerage firm Canaccord lowered its price target for Coinbase from $400 to $300, but maintained a "buy" rating. Canaccord believes that while the decline in spot prices has impacted the industry, Coinbase has maintained robust profitability and is gaining more market share as its product line expands (such as the "Everything Exchange" vision and the acquisition of Deribit). Furthermore, Canaccord expects the company to increase its share buyback program.
According to its financial report, Coinbase's fourth-quarter revenue was $1.78 billion, lower than the expected $1.83 billion; adjusted earnings per share (EPS) were $0.66, significantly lower than the market consensus of $0.96. As a result, the stock fell by about 8% after the earnings release. (CoinDesk)
