Analysts Lower Price Targets for Coinbase Amid Earnings Miss
Wall Street analysts from firms including JPMorgan and Canaccord have revised their price targets for Coinbase (COIN) following the company’s disappointing fourth-quarter earnings report. The largest publicly traded cryptocurrency exchange faced challenges as it fell short of earnings expectations, prompting concerns from industry experts.
Impact of Weak Crypto Prices
JPMorgan attributed the earnings miss to declining cryptocurrency prices and a drop in trading activity, which significantly impacted both volumes and fees for Coinbase. Despite maintaining an ‘overweight’ rating on the stock, the bank has reduced its price target from $290 to $252, as noted in their Thursday report.
Stock Performance and Trends
Coinbase’s stock has experienced a rocky start to the year, with a decline of approximately 40% year-to-date. As of publication time, the stock was trading around $150 in pre-market, following a closing price of $141.09 yesterday. These fluctuations mirror wider trends in the volatile digital assets market.
Declining Crypto Trading Volumes
The broader crypto-linked equities have faced pressure, with significant companies like Coinbase struggling against decreasing trading volumes and plummeting token prices. Bitcoin, the leading cryptocurrency, remains around $66,560.23, marking a decline of about 25% year-to-date and remaining significantly below its late-2025 peaks.
Operational Challenges and Analyst Insights
According to JPMorgan analysts led by Kenneth Worthington, Coinbase is grappling with a 22% year-over-year increase in operating expenses. They noted that the company’s shift towards lower-fee options like Advanced trading and Coinbase One subscriptions has added to the strain on its financial results.
Canaccord’s Continued Optimism
Meanwhile, Canaccord continues to view Coinbase favorably, maintaining its ‘buy’ rating while adjusting its price target from $400 to $300. Analysts acknowledge the company’s solid profitability and its ability to capture market share, even amid falling cryptocurrency prices. They believe that Coinbase is well-positioned to thrive as it expands its product offering.
Future Expectations and Market Share Growth
Canaccord’s analysts, led by Joseph Vafi, highlighted positive developments in Coinbase’s “Everything Exchange” and an increased usage of USDC payment solutions. They also pointed to growth within decentralized finance (DeFi) applications on the Base and Ethereum networks. The recent acquisition of Deribit, a derivatives exchange, is expected to enhance cross-sell opportunities both domestically and internationally.
Industry Outlook and Strategic Steps
Looking ahead, Canaccord predicts a challenging first quarter for the crypto industry but believes Coinbase will capture additional market share and enhance stock buybacks. They argue that the stock price is nearing cyclical lows, setting the new price target based on a multiple of 22 times its EBITDA estimate for 2027.
For more insights, read: Coinbase misses Q4 estimates as transaction revenue falls below $1 billion.
