Wall Street Faces Reality Check: Coinbase Price Targets Cut Like a Bad Haircut!

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Markets

What to know:

  • JPMorgan, in a fit of optimism-or perhaps sheer denial-has chosen to retain an overweight rating on Coinbase stock, but alas, has slashed its price target to a mere $252 after the fourth-quarter earnings and Ebitda decided to play hide and seek with forecasts.
  • Broker Canaccord, with a flair for the dramatic, has reduced its Coinbase price target from $400 to $300, all while maintaining a buy rating, proving that hope springs eternal even in dire times.
  • Trading volumes and retail take rates at the crypto exchange have taken a nosedive, which prompted our dear investment bank friends to reconsider their forward fee assumptions. Who knew numbers could be so fickle?

In the grand theater that is Wall Street, analysts from revered establishments like JPMorgan (JPM) and Canaccord have lowered their price targets for Coinbase (COIN) stock, following the disheartening news that the largest publicly traded crypto exchange has missed its fourth-quarter earnings estimates by what one might call a regrettable margin.

According to JPMorgan, the feeble state of crypto prices and trading activity has weighed heavily on volumes and fees, much like a sad cloud on a sunny day. Nevertheless, the bank insists on maintaining its overweight rating on the beleaguered crypto exchange, though it has prudently reduced the price target from $290 to $252 in a report that was likely riddled with sighs.

The stock, which has seen a staggering descent of about 40% this year alone, was waffling around $150 in pre-market trading when this little tale was penned. It had closed the previous day at $141.09, which, let’s face it, isn’t winning any beauty contests.

As crypto-linked equities stumble into the new year like a toddler learning to walk, they have broadly mirrored the tumultuous digital-asset market. Major companies such as Coinbase are feeling the heat as their share prices plummet amidst declining crypto trading volumes and sliding token prices-a recipe for disaster if there ever was one. Bitcoin, the once-mighty king of cryptocurrencies, remains languishing well below its late-2025 peaks and is down about 25% year-to-date, much to the chagrin of its loyal followers.

JPMorgan analysts, under the wise yet weary guidance of Kenneth Worthington, have noted that higher operating expenses-up 22% year-over-year-combined with a shift towards lower-fee Advanced trading and Coinbase One subscriptions, have pressured results like a vice grip. They’ve lowered their forward take-rate assumptions, citing a softer volume and market cap outlook as reasons for trimming the price target. The take rate, you see, is simply the percentage of transaction volume the company manages to keep as revenue, and oh, how the mighty have fallen!

However, in a twist of fate that would make any soap opera writer proud, broker Canaccord claims that Coinbase’s scale and profitability shine brighter than a diamond in a coal mine amidst a volatile crypto market. They maintain their buy rating while lowering their price target to $300 from $400, after promptly reassessing their near-term estimates post-results.

While the tumbling spot prices have cast a long shadow over the broader industry, Canaccord asserts that Coinbase remains solidly profitable and is gradually seizing market share as it expands its product suite. Talk about turning lemons into lemonade!

Analysts led by Joseph Vafi have highlighted the company’s progress on the much-touted “Everything Exchange,” noting growth in USDC commerce use cases and the expanding universe of decentralized finance (DeFi) applications sprouting on Base and Ethereum, all celebrated in a report published Thursday, presumably over a cup of coffee.

Deribit, the derivatives exchange acquired during the year, is hailed as a strategic jewel aiding cross-sell activity outside the U.S. across both spot and derivatives, because why not maximize those opportunities?

The analysts proudly declared that global trading volume and market share have risen a staggering 100% from a year earlier, with recent records in notional volume being supported by, of all things, activity in gold and silver futures. Who would have thought?

Canaccord anticipates a tougher first quarter for the industry, predicting that Coinbase will manage to gain market share and ramp up stock buybacks, striking a heroic pose against the backdrop of adversity. They view the stock as hovering near cyclical lows, with the new $300 target based on 22 times its 2027 Ebitda estimate-because who doesn’t love a good estimate?

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2026-02-13 13:50