Morgan Stanley Slashes Coinbase Price Target by Over 50%

Morgan Stanley has drastically reduced its price target for Coinbase shares. The figure dropped from 258 dollars to 120 dollars which represents a cut of approximately 53 percent.

The decision reflects concerns over a slowdown in the platform's trading activity. Analyst Michael Cyprys notes that the company's profit recovery will likely occur at a slower pace than previously anticipated.

The climate of uncertainty in the crypto asset market was exacerbated by a hacking attack on Binance. This event brought additional instability to the sector and impacted the revenue outlook for Coinbase.

The company recently reported a 34 percent drop in net revenue for the third quarter compared to the previous year. The result reached 1.16 billion dollars which put pressure on the firm's market value.

Coinbase shares extended their losses following the release of the financial data and the bank's rating revision. Other companies linked to the cryptocurrency ecosystem also recorded significant declines in their stock prices.