Barclays Cuts Robinhood Target, Downgrades Coinbase Ahead Of Q1 Earnings

Barclays cut Robinhood's price target to $89 on Wednesday but maintained an 'Overweight' rating. The firm downgraded Coinbase to 'Underweight' with a $140 target, citing declining trading volumes and weaker retail activity.

The decline in trading volumes has impacted Coinbase's earnings before interest, taxes, depreciation, and amortization (EBITDA), which is expected to be 24% below Wall Street analyst expectations. Barclays noted that the first quarter could act as a reset point for broker and crypto-linked stocks as the sector adjusts to lower volumes.

Robinhood saw a significant increase in its stock price after it was selected to support Trump Accounts, with Cathie Wood's investment firm purchasing $13 million worth of HOOD shares on Tuesday. The program involves tax-advantaged investment accounts for US citizens under 18, with government-backed contributions for eligible participants.