Clinch believes that risk-reward seems less attractive due to persistent regulatory issues and weak volumes. Last week, Atlantic Equities analyst Simon Clinch also downgraded Coinbase stock to Hold from Buy but increased the price target to $80 from $70. The analyst continues to see Coinbase as a “likely long-term winner” in the crypto space but thinks that fundamentals remain challenged. However, he raised his price target for COIN to $70 from $61.įurther, Budish pointed out that COIN’s Q2 volumes have declined 36% compared to the first quarter and July volumes are trending worse on a month-over-month basis. Last week, Barclays analyst Benjamin Budish downgraded Coinbase from Hold to Sell, citing regulatory overhang, the recent rally in the stock, and rising competition, with some TradFi-backed exchanges and other players entering the crypto sector. Nonetheless, several analysts remain wary of the regulator headwinds. District Judge’s ruling that Ripple did not violate federal securities law by selling XRP on public exchanges is being seen as a favorable development for Coinbase. Coinbase is aggressively fighting the SEC’s allegations and seeking more clarity regarding the regulations for crypto firms. In June, the SEC sued Coinbase for allegedly operating its crypto asset trading platform as an unregistered national securities exchange and broker. Analysts’ Opinions Ahead of COIN’s Q2 Earnings Ahead of the company’s second-quarter results scheduled to be announced on August 3, several Wall Street analysts seem cautious on the stock due to regulatory overhang and weak volumes. Shares of cryptocurrency exchange Coinbase Global ( NASDAQ:COIN) have rallied more than 77% over the past month and 186% year-to-date, thanks to the favorable court ruling for Ripple Labs (the crypto firm behind XRP-USD token) and the growing interest of several crypto firms to launch a spot Bitcoin ( BTC-USD) ETF.
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