Mizuho cuts Coinbase target, calls 30% pullback overdone

Mizuho lowered the firm’s price target on Coinbase (COIN) to $217 from $280 and keeps a Neutral rating on the shares. The firm says that since its last model update on February 20, the price of bitcoin has fallen from $98,000 to $79,000 and Coinbase shares are down 30%. While some multiple compression is warranted due to lower multiples across technology, the move in Coinbase shares is overdone, the analyst tells investors in a research note. Mizuho believes the stock should trade closer to $217. While it sees some upside from here, it remains Neutral given the longer-term risk of pricing pressure from increased competition across the crypto trading space. Mizuho cites lower market multiples for the target cut.