On July 23, Citi lowered its target to $235 from $400, a roughly 41% reduction, while reiterating its Buy rating. The move follows a similar downgrade from JPMorgan on July 17, which cut its
On July 23, Citi lowered its target to $235 from $400, a roughly 41% reduction, while reiterating its Buy rating.
The move follows a similar downgrade from JPMorgan on July 17, which cut its target to $196 from $283 while keeping an Overweight rating.
Coinbase is scheduled to report Q2 earnings after markets close on July 30.
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Despite the sharp reduction, Citi's new target remains above Coinbase's recent trading price and is broadly in line with Wall Street's consensus.
According to FactSet data cited by MarketScreener, analysts have an average target of roughly $223, suggesting many still expect upside from current levels.
The price target cut appears to reflect weaker crypto sector valuations and a softer market backdrop rather than a fundamental shift in Coinbase's business.
The earnings report comes after a challenging second quarter for digital assets.
Coinbase's second quarter ran from April 1 through June 30, a period during which crypto prices and trading activity remained under pressure.
Bitcoin spent much of the quarter below previous highs and is down roughly 46% over the past year at the time of writing, according to TradingView.
Bitcoin's one year chart: TradingViewLower crypto prices and reduced volatility typically translate into weaker retail trading activity, pressuring transaction revenue for exchanges such as Coinbase.
That would mark a continuation of trends the company reported in Q1, when total crypto market capitalization and trading volumes both fell more than 20% quarter over quarter amid broader risk-off sentiment, leading to suppressed trading activity.
The company reported $1.4 billion in revenue and $303 million in adjusted EBITDA but posted a net loss of $394 million as weaker crypto markets weighed on financial results.
Transaction revenue fell as consumer and institutional trading volumes declined.
At the time of writing, Coinbase shares traded at $162.81 at publication, down about 2% on the day.
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