Key facts
- Morgan Stanley analyst Michael Cyprys cut the price target to $120 from $258, about 53%, per a Monday report.
- Coinbase posted $719 million in third-quarter net income, largely from gains on cryptocurrency investments.
- Adjusted net income at Coinbase was $78 million for the third quarter.
- Morgan Stanley said Coinbase remains one of crypto's strongest competitors but expects profit recovery to be slower.
Morgan Stanley analyst Michael Cyprys lowered Coinbase's price target to $120 from $258 on Monday, November 2, 2026, a cut of about 53%, and reduced the bank's rating on the stock, according to a Monday report. The note cited recent trading trends, a softer revenue outlook and uncertainty in the crypto market following Binance's $6.3 billion hack.
The bank said it still sees Coinbase as one of the strongest competitors in crypto but expects profits to recover more slowly than previously forecast.
The downgrade followed Coinbase's third-quarter report on October 29, which showed net revenue down roughly 34% year over year to $1.16 billion. The exchange posted $719 million in net income, largely driven by gains on cryptocurrency investments, while adjusted net income was $78 million.
The results set off a selloff in crypto-linked stocks on Friday, with Coinbase shares falling more than 13% in midday trading. Circle shares declined more than 9% and Strategy fell about 8%. Coinbase shares extended their losses on Monday, dropping more than 3.3% to $138, according to Yahoo Finance data.