Morgan Stanley Cuts Coinbase Target to $120 as Earnings Outlook Weakens

Morgan Stanley has turned more cautious on Coinbase, cutting its rating to Underweight and setting a $120 price target. Analyst Michael Cyprys pointed to weaker trading activity and slowing earnings growth. He also warned that the Binance hack could hurt confidence in centralized crypto exchanges.

The bank lowered its 2027 revenue estimate by 28% and its 2028 forecast by 18%. Adjusted EBITDA is also expected to come in below earlier projections.

Coinbase Revenue Falls Short of Forecast

Coinbase brought in $1.22 billion in third-quarter revenue, 6% below Morgan Stanley’s estimate. Transaction revenue took the biggest hit, falling 44% from a year earlier to $590.2 million. Subscription and services revenue was also down 20%, reaching $570.2 million.

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The exchange recorded $332.9 million i…

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