Key facts
- Baird Equity Research cut its Coinbase price target to $142 from $160.
- Baird designated Coinbase (COIN) as a "Bearish Fresh Pick."
- Coinbase stock fell over 6% in premarket trading.
- Bitcoin declined roughly 5.9% to its lowest level since April.
- Baird expects Q2 revenue to miss Wall Street estimates by 5%–6% due to weak trading volumes.
- The CLARITY Act is unlikely to pass before the mid-term elections.
Baird Equity Research has reiterated a Neutral rating on Coinbase (COIN) and reduced its price target to $142 from $160, designating the stock as a "Bearish Fresh Pick." The firm cited weak trading volumes as the primary concern, contributing to a significant drop in Coinbase's stock price. The stock fell over 6% on the day, trading around $153, while Bitcoin also experienced a decline of approximately 5.9% to its lowest level since April. Baird anticipates that Coinbase's second-quarter revenue will fall short of Wall Street consensus estimates by 5% to 6%, largely due to subdued crypto trading activity. The CLARITY Act, a piece of legislation viewed by crypto proponents as potentially beneficial for the market, is considered unlikely to pass before the upcoming mid-term elections. Despite Baird's bearish outlook, a majority of analysts tracked by FactSet maintain a Buy rating on Coinbase, with an average price target of $231.