Coinbase Global Inc has seen a tremendous surge in its stock price over the past thirty days, but Piper Sandler analyst Patrick Moley predicts a downturn ahead. Moley downgraded the crypto exchange to “neutral” and lowered his price target to $60, signaling a 25% downside from its current value.
The analyst attributed the recent increase in Coinbase stock to asset managers filing for a Spot Bitcoin ETF and the consequent benefit to crypto prices. However, he noted that rising crypto prices have not translated to increased trading volumes for Coinbase in recent quarters.
Moley also said that he expects Coinbase Global to report monthly transacting users and trading volumes at a two-year low in its second financial quarter. He added that there needs to be more progress on the regulatory front and a convincing turnaround in the underlying fundamentals of the business before becoming more positive on the stock.
Despite the regulatory crackdown, the company increased its market share last month to a new high since January 2023, according to data from Kaiko – a digital assets data provider.
