Coinbase Global Inc. is facing increased skepticism from analysts, with Morgan Stanley joining the list of bears. The investment bank significantly lowered its revenue estimates for the cryptocurrency exchange, citing diminished confidence in an earnings recovery.
On Monday, Morgan Stanley analyst Michael Cyprys downgraded Coinbase to underweight from equal-weight and slashed his price target by more than half to $120. This move comes amid a challenging year for Coinbase, with shares down more than 39% year-to-date.
The bearish outlook was compounded by a political setback on Tuesday, when the crypto-friendly Republican party suffered a decisive defeat in the midterm elections. This outcome could further impact the regulatory environment for cryptocurrency exchanges like Coinbase.