Morgan Stanley analyst Michael Cyprys downgraded Coinbase to Underweight and cut his price target from $258 to $120. He pointed to weak trading trends and a soft revenue outlook.
Morgan Stanley downgraded Coinbase Global (COIN) from Equal Weight to Underweight on November 2, 2026. Analyst Michael Cyprys also cut his target from $258 to $120.
The bank has lost confidence that Coinbase's earnings will bounce back anytime soon, pointing to weak trading trends and a soft revenue outlook.
Forecasts and valuation multiple both drop
The new $120 price target sits below the $143.54 close on October 30. Morgan Stanley reduced its revenue forecasts for Coinbase by 28% for 2027, and the 2028 revenue estimate came down by 18%.
Profit estimates took an even bigger hit. Adjusted EBITDA forecasts were cut by 47% for 2027 and by 25% for 2028. The bank now projects normalized 2028 EBITDA of $2.4 billion, 14% below 2025 levels.
The bank also lowered the EBITDA multiple it applies to Coinbase from 20x to 12x. Cutting both the earnings estimate and the multiple compounds the effect, which is how a $258 target becomes a $120 one.
Morgan Stanley still considers the company well-positioned in the market, thanks to its expanded range of products, but warned of considerable risks to both earnings and valuation.
Earnings miss and falling trading volumes
Coinbase reported third-quarter earnings on October 30, and the figures disappointed. Several other banks lowered their Coinbase price targets in late October.
A major security breach at Binance has deepened uncertainty across the sector and contributed to falling trading volumes. For Coinbase, trading activity still drives a large share of how investors value it, and exchange revenue tends to follow when traders step back.
Source: Crypto Briefing
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