Analysts from banking giant JPMorgan have reportedly lowered their price target for crypto exchange Coinbase’s stock (COIN), citing increasing pressure on digital asset markets.
According to a report from MarketWatch, JPMorgan analyst Kenneth Worthington has a neutral rating on COIN but has cut his price target by 23% to from $78 to $60, which is only slightly below its current price of $61.88.
Worthington said in a note to clients that crypto trading activity remains under pressure for the Q3 of this year, and that Coinbase is losing market share during the downcycle.
According to Yahoo Finance, JPMorgan analysts believe that Coinbase’s staking business, which it offers for six different crypto assets, “has less upside given the selloff in crypto.”
Meanwhile, top ratings agency Moody’s has reaffirmed Coinbase’s Ba3 grade, placing COIN in “junk” territory. The company has changed its outlook on COIN’s rating from under review to negative.
Moody’s senior analyst Fadi Abdel Massih said,
“The outlook is negative because of the challenging crypto asset operating environment which continues to be a drag on Coinbase’s free cash flow generation capacity.”
At time of writing, COIN is about 85% down from its all-time high of $426.
Coinbase is currently facing several lawsuits, including one that alleges the exchange infringed on a patent for a value transfer technology.
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The post JPMorgan Analysts Drop Price Target for Coinbase Stock Due to Pressure on Crypto Markets: Report appeared first on The Daily Hodl.
