The Coinbase (COIN) consensus analyst revenue outlook for this year is still too rosy, says Bank of America’s Jason Kupferberg. He downgraded the stock to underperform from neutral and cut his price target to $35 from $50.
Kupferberg’s downgrade comes after COIN’s near-30% rally to start 2023. The downgrade likely helped send the shares lower by 3.6% to $41.68 before the stock market open.
Though management’s moves are “encouraging” and “nimble,” said Kupferberg, his team is cutting its revenue forecast for 2023 after its analysis of fourth-quarter crypto transaction volume data prompted a “murky at best” outlook for this year.
Given the “volatile crypto environment,” he said, the shares are likely to struggle should the consensus estimate be revised lower.
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