Citi Slashes Coinbase Target 41% - And Keeps Its Buy Rating
Coinbase (COIN) stock heads into second-quarter earnings today after the close under a warning from one of its biggest backers.
Citigroup still rates the stock a buy. Even so, it cut its Coinbase price target from $400 to $235 on July 24, a 41% reduction that landed days before the report.
Citi Keeps Its Buy Rating but Slashes the COIN Stock Target
The gap between that rating and that target is the real story into earnings. Citi analyst Peter Christiansen kept the buy call, yet he still cut 41% off his goal for COIN stock.
His reasoning was blunt. Christiansen expects the quarter to mark a low point for trading, with spot trading volumes near a two-year trough.
That caution did not appear in a vacuum. Coinbase had missed revenue estimates last quarter, and Coinbase stock has fallen about 29% this year, so the market was already braced for a softer stretch.
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