Morgan Stanley downgraded Coinbase from Equal Weight to Underweight and cut its price target from $258 to $120. Analyst Michael Cyprys cited weak trading trends and limited prospects for a near-term earnings rebound. Revenue forecasts were lowered by 28% for 2027 and 18% for 2028, while adjusted EBITDA estimates were cut by 47% and 25%, respectively. The bank also reduced its valuation multiple from 20 to 12 times EBITDA, compounding the effect of lower earnings estimates on the price target. The downgrade followed disappointing quarterly results, declining trading volumes amid a major Binance security breach, and similar price-target cuts from other banks.
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