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Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuCoinbase Global could be under sustained pressure following a massive hack on one of its competitors along with a slowdown in crypto trading, according to Morgan Stanley. The investment bank downgraded the crypto exchange to underweight from equal weight. It also lowered its price target on shares to $120 from $258, suggesting 16% downside from Friday’s close. “Earnings recovery [is] less certain…Our initiation thesis anticipated a 2026 earnings reset followed by a sharp rebound in 2027, supported by recovering crypto prices, higher retail engagement, broader product adoption and operating leverage,” analyst Michael Cyprys said Monday in a note to clients. “While Coinbase continues to execute on its broader strategy, recent trading trends, a softer forward revenue outlook and uncertainty around the backdrop for crypto.” Crypto trading on Coinbase weakened in October, which has put some pressure on the company’s shares, the analyst noted. He said fourth-quarter transaction revenue through Oct. 25 came in at around $165 million. That puts it on track for roughly $607 million, about 11% below a consensus of $685 million. COIN 1M mountain Shares of Coinbase have plunged about 22% over the past month. The stock has fallen nearly 22% over the past month. Crypto trading could also stagnate further following a roughly $6 billion hack on digital assets exchange Binance last week — the largest of its kind in crypto history. That, in turn, could hurt Coinbase’s earnings and ultimately its stock, according to Cyprys. Morgan Stanley has cut its Coinbase revenue forecast by 28% for 2027. It has also slashed its adjusted EBITDA estimate by 47% for the same period. “October’s weaker trading pace and crypto market uncertainty challenge our recovery thesis,” Cyprys wrote. Morgan Stanley’s call goes against consensus on Wall Street. Of the 41 analysts covering Coinbase, 26 have a buy or strong buy rating on the stock, while 13 have a hold on it, LSEG data shows.Read More