Cantor Fitzgerald Analyst Downgrades Crypto Stock Valuations
Cantor Fitzgerald's analyst Ramsey El-Assal has taken a more conservative stance on crypto stock valuations, but still recommends buying the dip in COIN, MSTR, and HOOD. The analyst lowered price targets for Coinbase Global (COIN) to $184 from $250, Strategy (MSTR) to $186 from $212, and Robinhood Markets (HOOD) to $115 from $130 while maintaining an 'Overweight' rating on all three stocks.
The reduced targets are due to updated valuation assumptions, not a change in the longer-term outlook. This comes amid a broad-based market sell-off in Bitcoin (BTC), with its price falling roughly 21% over the last three months.
Regulatory uncertainty has also weighed on crypto-related stocks, particularly as the CLARITY Act makes its way through Congress. Coinbase reported lower-than-expected revenue in its second quarter, and Strategy has faced criticism for its recent Bitcoin sale. However, Cantor Fitzgerald remains positive on these stocks, citing their potential for growth.