Mizuho reiterates an Underperform rating on Coinbase with a $27 price target ahead of the company’s Q3 report. The analyst expects “dwindling” volumes combined with an expected “drought” in retail trading to meaningfully weigh on the company’s revenue. It expects Coinbase to report revenue 10% below current consensus levels. In Q2, average daily trading volumes on the Coinbase platform were $1B, and this decelerated to $900M in July, $790M in August, and $665M in September, the analyst tells investors in a research note. As a result, the firm lowered it Q3 volume estimate from $88B to $72B. It says lower volumes are likely to drive a Q3 revenue miss.
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