Coinbase Global (COIN) was assigned an underweight stock recommendation by Wells Fargo Thursday as the bank sees increased global competition eating into the crypto exchange's market share and lower retail fees eroding profitability.
The company's path to sustainable profitability will be challenging given the above dynamics, and effects of the so-called crypto winter will remain, analyst Jeff Cantwell told clients in a research note.
Wells Fargo gave Coinbase a $57 price target. The shares are trading around $61 Thursday morning.
Cantwell also initiated research coverage on miner Riot Blockchain (RIOT) with an equalweight rating and $7 price target. The bank cited the crypto winter, regulation and macroeconomic headwinds.
Wells Fargo also gave digital asset platform Bakkt (BKKT) an equalweight rating, setting a $2.50 price target. Bakkt is facing a tough macroeconomic environment, Wells Fargo wrote.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.