COIN Stock Slips Alongside Crypto Equities After Citi Cuts Price Target – Morgan Stanley Backs RIOT, HUT

• Hut 8 outperformed the group after Morgan Stanley initiated coverage with an 'Overweight' rating and a $263 price target.
• The firm also gave an ‘Overweight’ rating to Riot Platforms, but the stock remained in the red during pre-market trade.
• Citi lowered its Coinbase price target to $235 from $400 but maintained a 'Buy' rating, citing "durable earnings support" from subscription and services revenue.

Crypto-linked equities moved lower in early morning trade on Thursday, tracking the broader sell-off in the stock market and weakness in Bitcoin (BTC).

Bitcoin's price dipped around 1% in the last 24 hours, attempting to keep above the $65,000 mark. On Stockwits, retail sentiment around the apex cryptocurrency remained in 'bullish' territory over the past day. Among large-cap crypto equities, BitMine Immersion Technologies (BMNR) led losses, falling more than 2.4% in pre-market trade. Michael Saylor-backed Strategy (MSTR) slipped over 2%, followed by Circle Internet Group (CRCL), Robinhood (HOOD), Block (XYZ), Coinbase (COIN), and Riot Platforms (RIOT). 

Hut 8 (HUT) bucked the broader trend, rising more than 2% after receiving fresh bullish coverage from Morgan Stanley.

Coinbase, Block Draw Mixed Analyst Commentary

COIN’s stock fell over 2% in pre-market trading after Citi lowered its price target to $235 from $400, while maintaining a 'Buy' rating. Retail sentiment on Stocktwits around the Brian Armstrong-led enterprise remained in ‘bullish’ territory over the past day.

Citi reduced its earnings estimates ahead of Coinbase's second-quarter (Q2) results, saying the quarter is likely to represent a cyclical low for trading activity, with spot volumes expected to reach a two-year low.

The bank also hedged to state that Coinbase currently trades near "trough-cycle multiples" and said the company's subscription and services business continues to provide "durable earnings support."

Meanwhile, Jack Dorsey-led XYZ stock also slipped roughly 1%, despite receiving a higher price target from KeyBanc. The brokerage raised its target to $105 from $100 while reiterating an 'Overweight' rating. It stated the company continues to emerge as "a leader in the shift to an AI-native organization."

KeyBanc expects Block to beat consensus estimates for gross profit and adjusted operating income in the second quarter (Q2), supported by continued momentum in its Square business and healthy Cash App engagement.

Morgan Stanley Turns Bullish On 'Powered Shell Providers'

Morgan Stanley initiated coverage of Riot Platforms and Hut 8 with 'Overweight' ratings and price targets of $36 and $263, respectively. While HUT’s stock gained, RIOT’s stock fell nearly 1% in pre-market trade.

Retail sentiment on Stockwits around HUT improved to ‘extremely bullish’ from ‘bullish’ territory over the past day. Meanwhile, sentiment around RIOT flipped to ‘bullish’ from the ‘bearish’ zone.

The firm also launched coverage on additional Bitcoin miners turned high-performance computing companies, referring to the group as "powered shell providers" (PSPs).

Despite the recent sell-off across the sector, Morgan Stanley said it remains optimistic, stating that recent agreements with hyperscale cloud providers demonstrate "highly attractive terms."

The firm added that "now is the time to buy these stocks," saying the recent correction is "at odds with the lucrative transactions into which these companies sign."

Read also: GEV Stock Drops On Q2 Earnings Miss – CEO Raises Guidance, Says Data Center Orders Have Already Doubled 2025 Total

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