Coinbase Global Inc. is facing increased skepticism from Wall Street, with Morgan Stanley joining the list of bearish analysts. The investment bank significantly lowered its revenue expectations for the cryptocurrency exchange this week, citing growing uncertainty about an earnings recovery.
Morgan Stanley analyst Michael Cyprys downgraded Coinbase to underweight from equal-weight on Monday, slashing his price target by more than half to $120. The move reflects deteriorating confidence in the company's ability to bounce back from recent challenges.
Adding to Coinbase's woes, the crypto-friendly Republican party suffered a decisive defeat in the midterm elections on Tuesday. The political setback could further complicate the exchange's operating environment.