Opca on Monday has cut cryptocurrency exchange Coinbase Global (NASDAQ: COIN) price target to $ 314 from $ 377 which still implies 116% upside from last Thursday’s close.
COIN shares are off slightly by 1.1% in early morning trading. And with Bitcoin (BTC-USD) -35% slumping for the past six months, COIN is also falling more than 50% in the same time period and -56% Y / Y.
Ongoing selling pressure experienced in COIN comes amid “1) increasing competition and fee compression; 2) COIN over-earns and will not be profitable this year; 3) COIN is overvalued; 4) low trading volume; 5) crypto winter; and 6 ) potential regulatory actions against crypto companies, “according to a note written to clients.
Meanwhile, Opca believes that those bearish narratives are “way overblown and that this creates an opportunity for long-term investors to get into one of the most disruptive companies in the market at what we see as a very attractive valuation,” the note said.
Note that SA’s Quant Rating screened COIN at high risk of performing badly due to declining growth and decelerating momentum when compared with peers. The Quant Rating views COIN as a Sell, while Wall Street Analysts see it as a Buy (11 Strong Buy, 7 Buy, 4 Hold, 1 Sell, 1 Strong Sell).
On April 11, Raymond James pointed to Coinbase’s softer trading volumes.