HOOD, COIN Price Targets Slashed – Bernstein Predicts Crypto Stocks May Bottom Around Earnings Season

• Bernstein cut price targets on Robinhood and Coinbase but maintained ‘Outperform’ ratings on Monday.
• The firm said macro pressure and weak crypto sentiment were driving short-term declines.
• Analysts saw a potential bottom forming around these companies' weak first-quarter earnings.

Robinhood Markets Inc. (HOOD) and Coinbase Global Inc. (COIN) received price cuts from Bernstein on Monday morning, citing short-term pressure from geopolitics and weak sentiment in the crypto market.

The brokerage lowered its price target on Robinhood from $160 to $130 and on Coinbase from $440 to $330, but reiterated an ‘Outperform’ rating on both the crypto equities, as per TheFly. Despite trimming price targets, Bernstein believes current circumstances present a good entry point into these stocks. 

Coinbase's stock was up 2% in pre-market trading. The stock closed over $161 on Friday. On Stocktwits, the retail sentiment around COIN remained in the ‘neutral’ territory, while chatter levels around it remained ‘high’ over the past day. 

Robinhood's stock was also trading up 2% during pre-market hours. The stock closed at $66 on Friday. On Stocktwits, the retail sentiment around HOOD remained in the ‘bullish’ territory, while chatter levels around it remained ‘high’ over the past day. 

Analysts Think Crypto Stocks May Be Nearing A Bottom

“The combination of geopolitics and temporary crypto weakness is offering big discounts on crypto stocks,” Bernstein noted, adding that both companies provide exposure to trillion-dollar markets with significant long-term growth potential. 

The firm said that the industry might be reaching a tipping point. It anticipates crypto stocks to bottom around the approaching weak first-quarter earnings cycle, indicating that the present weakness is a late-stage correction rather than a long-term decline. 

However, the cautious optimism goes beyond Robinhood and Coinbase. Bernstein said the overall crypto industry has greater potential, but values have fallen amid macroeconomic uncertainty. The firm also lowered Figure Technology (FIGR) price target to $67 from $72.

As part of a larger portfolio reorganization last week, Cathie Wood’s ARK Investment Management also reduced its stake in cryptocurrency firms such as Block Inc. (XYZ), Bullish (BLSH), and Coinbase.

Read also: Fed’s ‘D.O.G.E. 2.0’ Trap Could Be Bitcoin’s Moment, Says Veteran Strategist

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