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Coinbase price target lowered to $46 from $67 at Atlantic Equities

Atlantic Equities analyst Simon Clinch lowered the firm’s price target on Coinbase to $46 from $67 and keeps a Neutral rating on the shares. The "shocking collapse" of FTX "could be the pinnacle event that extends the duration and downside risks of the prevailing crypto winter," Clinch tells investors in a research note. The analyst believes the crypto economy is now "following a similar path to technology stocks in the aftermath of the dotcom bubble in the late 1990s/ early 2000s." The fall of FTX and its founder Sam Bankman-Fried adds further downside pressures "by eroding trust of consumers, regulators, and politicians, and raising the risks of additional contagion effects," Clinch writes. He believes Coinbase is well positioned to "both survive and benefit from these events." However, the "overwhelming headwinds" from a prolonged crypto winter cause him to lower the company’s forward estimates significantly. Clinch dropped Coinbase’s fiscal 2023 2024 net revenue estimates by 30% and 44% respectively, with more than 50% reductions to EBITDA estimates.

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