COIN Stock Sees Split View On Wall Street After Binance Hack Shifts Sentiment

• BTIG said Coinbase could gain over time if the Binance hack pushes investors to reconsider where they hold and trade crypto.
• BTIG kept a ‘Buy’ rating and a $240 price target, implying about 67% upside from Friday's close.
• Morgan Stanley analyst Michael Cyprys said confidence in Coinbase has weakened as its earnings recovery deteriorated.

Coinbase (COIN) shares edged lower in early-morning trade on Monday, as analysts offered a mixed outlook for the stock following the largest cryptocurrency hack faced by Binance (BNB), which rattled market confidence. 

BTIG Sees Coinbase Gaining Market Share

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According to TheFly, the firm said in a research note the breach could push investors to rethink where they store and trade digital assets. BTIG kept a ‘Buy’ rating and a $240 price target on the stock, which implied about 67% upside from Friday's close of $143. 

BTIG pointed to Coinbase's long-standing focus on security and custody as a potential advantage, noting that Coinbase could attract investors seeking a trustworthy platform, especially if the hack raised doubts about the broader crypto market. The firm also said Coinbase's newer offshore business could help it compete for Binance assets in markets it couldn't reach before.

Morgan Stanley Downgrades Coinbase, Slashes Price Target to $120

Morgan Stanley downgraded the stock to ‘Underweight’ and lowered the price target to $120 from $258, implying about a 16% downside from Coinbase's Friday close.

In a research note, analyst Michael Cyprys said confidence in Coinbase has dropped given “earnings recovery has deteriorated.” The analyst added that the company is still executing its broader strategy, but recent trading trends, “a softer forward revenue outlook and uncertainty around the backdrop for crypto following the Binance hack” point towards a weaker recovery for Coinbase than the firm expected before.  

Coinbase Shares Hit Two-Year Low After Earnings Miss

COIN stock was down over 1% during premarket trading hours, amid broader market weakness seen in the crypto industry. On Stocktwits, retail sentiment around COIN remained in the ‘bullish’ zone, accompanied by a ‘high’ chatter level over the past day. 

The stock fell more than 10% on Friday, touching an intraday low of $136.90, its lowest level since February 2024. Friday’s drop followed Coinbase's third-quarter results, in which earnings came in at $2.51 per share, well above the $0.08 expected by analysts, but revenue of $1.21 billion fell just short of the $1.22 billion forecast.

Read more: Bitcoin Bulls See Light At The End Of The Correction As Michaël Van de Poppe Says Midterm Elections Are 'Priced In'

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