Mizuho sees 45% downside in Coinbase after crypto survey

Mizuho analyst Dan Dolev says Mizuho survey suggests that, despite January’s bitcoin rally, retail investors continue to shy away from crypto. The survey, coupled with "disappointing" market share data and potential signs of take rate pressure in Q4, may all mean that "more headwinds are brewing" for Coinbase’s 2023 revenue, the analyst tells investors in a research note. The firm reiterates an Underperform rating on the shares with 45% potential downside to its $30 price target. With take rates 50-100 times higher than institutional, retail transaction revenue accounted for 83% of Coinbase’s total revenue in 2021, the analyst points out.