Citigroup Lowers Coinbase Price Target Amid Market Uncertainty
- Citigroup reduced its price target for Coinbase (COIN) from $505 to $400, reflecting a risk-off market sentiment.
- The new target suggests a potential increase from COIN’s recent close of $146, indicating over a doubling in value.
- Analysts cited decreased trading volumes and uncertainty regarding U.S. crypto legislation as key factors for the downgrade.
- Coinbase CEO Brian Armstrong withdrew support for a digital assets bill due to consumer protection concerns.
- Fourth-quarter net revenue projections for Coinbase were cut by approximately 10% to $1.69 billion, below consensus estimates.
The adjustment in Citigroup’s forecast comes as the bank anticipates Senate discussions on crypto regulation to extend beyond two years, amid ongoing lobbying conflicts over stablecoins and other provisions.
Despite the price target cut, Citigroup maintains a buy rating on Coinbase, emphasizing its leadership position in the market as it navigates regulatory changes. (Source)
