Coinbase downgraded to Neutral from Overweight at Piper Sandler

Piper Sandler analyst Patrick Moley downgraded Coinbase to Neutral from Overweight with a price target of $60, down from $65. The analyst cites valuation and a belief that the recent case brought forth by the SEC, as well as the continued lack of regulatory clarity in the U.S., has created “too much uncertainty to prudently project revenues in future years” for the downgrade. Coinbase shares are up 126% year-to-date and are up 55% since June, driven by a combination of rising crypto prices and a number of large asset managers filing for spot bitcoin exchange traded funds, the analyst tells investors in a research note. However, rising crypto prices have not translated to increased trading volumes for the company in recent quarters and the timing of a spot bitcoin ETF approval “is anyone’s guess,” says piper. In Q2, the firm expects Coinbase to report its lowest quarterly trading volumes and monthly transacting user totals in over two years.