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Coinbase Price Cut by JPMorgan on Lower Cryptocurrency Prices -Breaking

by Mike Robinson

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© Reuters

Sam Boughedda

Investing.com — Coinbase Global Shares of Inc (NASDAQ) fell 1.7% Wednesday, after JPMorgan slashed its price target to $345 per share from $447 Wednesday, citing a “meaningful decline in cryptocurrency prices.”

Kenneth Worthington, a JPMorgan analyst, maintained an overweight rating for the shares. Ahead of its earnings release, the analyst raised fourth-quarter estimates on “better than previously modeled trading volume yielding increased commissions and transactions fees.” 

Worthington said that Coinbase anticipates Coinbase’s staking revenues to increase due to Coinbase customers becoming more sophisticated and making use of their staking services.

However, full-year 2022 forecasts have been lowered “due to materially lower cryptocurrency prices in 1Q22.”

“While we continue to expect greater development and utilization of the blockchain and FY cryptocurrency technology, we see the lower prices as weighing on Coinbase value traded and thus weighing on revenue and Earnings. Worthington said that the model we have created is $1.6tr, which compares to $1.7tr.

In 2022, Coinbase shares fell more than 30 percent

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