Market Flux Event
Morgan Stanley Cuts Coinbase to Underweight and Slashes Price Target 53% to $120
Read this in the Market Flux appMorgan Stanley downgraded Coinbase from Equal-weight to Underweight on November 2, cutting its price target to $120 from $258, a 53% reduction, as analyst Michael Cyprys said confidence in the exchange's earnings recovery has deteriorated. Cyprys pointed to weakening trading activity, a softer revenue outlook, and uncertainty across crypto markets in the wake of a $6.3 billion hack at rival Binance. Coinbase's third-quarter revenue of $1.22 billion also missed Morgan Stanley's own forecast by 6%, adding to the bearish case.
The firm sharply lowered its multi-year financial forecasts: 2027 revenue was cut by 28% and adjusted EBITDA by 47%, while 2028 revenue was reduced by 18% and adjusted EBITDA by 25%. Morgan Stanley now expects Coinbase to generate just $2.4 billion in normalized EBITDA by 2028, a figure roughly 14% below 2025 levels, despite the company offering a broader product suite than in prior cycles. The firm also compressed its target EBITDA valuation multiple to 12x from 20x, reflecting its view that the earnings recovery will be significantly weaker and slower than previously anticipated.
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- WallstengineMorgan Stanley downgrades Coinbase $COIN to Underweight from Equalweight, slashing its price target to $120 from $258. Analyst Michael Cyprys says “confidence in the earnings recovery has deteriorated,” citing weaker trading trends, a softer revenue outlook and uncertainty in crypto markets following the recent Binance hack. The firm sharply lowered its forecasts: • 2027 Revenue: -28% • 2027 Adjusted EBITDA: -47% • 2028 Revenue: -18% • 2028 Adjusted EBITDA: -25% Morgan Stanley now expects just $2.4B in normalized EBITDA by 2028, roughly 14% below 2025 levels, despite Coinbase offering a broader range of products. The firm also cut its target EBITDA valuation multiple to 12x from 20x, warning that the earnings recovery could be significantly weaker than previously expected.
- Crypto BriefingMorgan Stanley downgrades Coinbase to underweight, cuts price target to $120
- MarketsdayMorgan Stanley Downgrades Stock, Cuts Price Target by 53% | November 2, 2026 🔹 Morgan Stanley downgraded Coinbase $COIN to Underweight from Equalweight and slashed its price target to $120 from $258. 🔹 Analyst Michael Cyprys cited weaker trading activity, a softer revenue outlook and uncertainty in crypto markets following the recent Binance hack. 🔹 2027 revenue forecast cut by 28%, while adjusted EBITDA forecast reduced by 47%. 🔹 2028 revenue forecast lowered by 18%, with adjusted EBITDA estimates cut by 25%. 🔹 Morgan Stanley expects normalized EBITDA of $2.4 billion by 2028, approximately 14% below 2025 levels. 🔹 The firm reduced its target EBITDA valuation multiple to 12x from 20x, reflecting weaker earnings expectations. 🔹 Key concerns include declining trading momentum, uncertain crypto-market conditions and deteriorating confidence in Coinbase's earnings recovery. 🔹 Market takeaway: Morgan Stanley sees a weaker-than-expected earnings recovery for Coinbase, with reduced forecasts and a lower valuation multiple pointing to a more cautious outlook. \#Coinbase #COIN #MorganStanley #Crypto #Bitcoin #CryptoStocks #CryptoMarket #Binance #EarningsOutlook #WallStreet #USStocks
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- DeItaoneMORGAN STANLEY DOWNGRADES COINBASE, SLASHES PRICE TARGET TO $120 Morgan Stanley downgraded Coinbase ($COIN ) to Underweight from Equal-weight, cutting its price target to $120 from $258, a 53% reduction. Analyst Michael Cyprys cited weakening trading activity, a disappointing revenue outlook and uncertainty following the $6.3 billion Binance hack. The bank lowered its 2027 revenue forecast by 28% and adjusted EBITDA estimate by 47%. Q3 revenue of $1.22 billion missed Morgan Stanley's forecast by 6%.