Mizuho sees ‘reality check’ for Coinbase shares, keeps $27 target

Mizuho analyst Dan Dolev says that beginning in Q1 of 2023, there is a “stark bifurcation” between Coinbase volumes and the price of bitcoin. The firm believes this indicates “potential fatigue” among retail customers. “FOMO no longer entices investors to trade Bitcoin when prices rise the way it did in prior years,” the analyst tells investors in a research note. Mizuho believes this could prove problematic for Coinbase, as it generates 95% of its transaction revenue from retail trades. It worries that the year-to-date rise in Coinbase’ stock is unsustainable. The firm expects a “reality check to follow” and keeps an Underperform rating on the shares with a $27 price target.