Goldman Cuts Coinbase Price Target to $41, Says Exchange is Fairly Insulated From FTX Collapse

Goldman maintained a sell rating on COIN, revising lower its 12-month price forecast to $41 from $49.

AccessTimeIconNov 14, 2022 at 11:33 a.m. UTC
Updated Nov 14, 2022 at 12:01 p.m. UTC

The U.S.-based cryptocurrency exchange Coinbase (COIN) is sufficiently insulated from the fallout of the FTX collapse, Goldman Sachs said on Friday.

Goldman took a bearish stance on Coinbase's stock, cutting its price target to $41 from $49, and maintaining its "sell rating."

The Wall Street giant also sees FTX's collapse having a limited impact on trading and investing app Robinhood, as crypto related revenues accounted for just 9% of the platform's total revenue. Goldman analysts revised the 12-month price target for Robinhood's stock (HOOD) from $13 to $12.50.

Coinbase's highly liquid balance sheet and lack of proprietary trading activities shield the Nasdaq-listed exchange from ramifications of FTX's situation, Goldman's equity research team said in a note sent to clients on Friday.

The team expects the FTX-induced market volatility and investor unease about less regulated exchanges to bode well for Coinbase in the near term.

"We have also updated our 2022/2023/2024 revenue estimates from $3.26 billion/$3.18 billion/ $3.34 billion to $3.29 billion/$2.71 billion/$2.76 billion," analysts noted.

Last week, Brian Armstrong, the CEO of crypto exchange Coinbase, noted that the exchange does not have significant exposure to FTX, its native token FTT and FTX's sister concern Alameda Research.

Sam Bankman-Fried's FTX filed for bankruptcy on Friday, sending shockwaves across the crypto industry. FTX's fall was set in motion by the CoinDesk report showing Alameda holding large amounts of illiquid FTT on its balance sheet.

Shares of Coinbase were down 1.7%, while shares of Robinhood slipped over 4%, in pre-market trading.


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Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.