Morgan Stanley raises its target price for Coinbase shares to $258

Morgan Stanley raised its target price for Coinbase to US$258, maintaining its "Equal Weight" rating

On the eve of the earnings report, Morgan Stanley raised its target price for Coinbase from US$250 to US$258, while maintaining its "Equal Weight" rating. That forecast is about 50% higher than the stock's previous close of $172.

Analysts 'views are divided: Morgan Stanley raises, Citizens JMP lowers

Morgan Stanley raised Coinbase's target price by $8 without changing its "equal rights" recommendation. According to The Fly reported on October 9, the adjustment was made as part of a preview of earnings reports covering brokerages, exchanges and capital market infrastructure companies. The bank has set an initial target price of $250 when it began covering Coinbase on September 10. This update keeps the investment recommendation unchanged while raising the expected share price.

Citizens JMP, meanwhile, lowered its target price by $45 to $280 from $325, but retained its "Market Outperform" rating. According to MarketBeat data, its revised forecast means about 62.8% upside compared to a reported share price of $172. Investing.com reported that Citizens attributed the downgrade to the execution required by Coinbase to expand beyond cryptocurrency trading. The company pointed out that more than 40% of its revenue already comes from non-cryptocurrency trading activities.

Despite the downgrade, Citizens 'forecast is still $22 above Morgan Stanley's new price target, and the two institutions maintain different rating positions. Other recent analyst views also show a diversity of expectations. MarketBeat pointed out in an analyst summary on October 9 that Goldman Sachs reiterated its "buy" rating with a target price of $244, while Cantor Fitzgerald maintained its "overmatched" rating and a target price of $212 on August 31.

Among the analysts tracked, MarketBeat listed 20 "buy" ratings, 13 "hold" ratings, and 3 "sell" ratings. The comprehensive classification is "hold" and the average target price is US$224.29.

Second-quarter revenue fell short of expectations, with derivatives and equity businesses focusing on

Coinbase's earnings report released on July 30 showed that second-quarter revenue was US$1.22 billion, down 18.5% from US$1.22 billion in the same period last year. MarketBeat's earnings data showed analysts expected revenue of $1.29 billion and a loss per share of $1.36, which was above expectations for a loss per share of $0.44. Previously, crypto.news reported that Coinbase's second-quarter revenue fell short of expectations, accompanied by a net loss of $359.5 million.

In terms of specific business segments, transaction revenue was US$599 million, and consumer transaction revenue was US$452 million. The latter dropped significantly by 30.5% year-on-year. In the subscriptions and services segment, revenue reached US$555 million, of which stableco-related revenue was US$292 million. Subscriptions and services accounted for 48% of net revenue, while the average USDC balance held on Coinbase products reached $20 billion.

Coinbase said in its earnings report that its share of cryptocurrency trading volume hit a record high of 10.3%, up from 9.1% in the first quarter. The company said that despite weak market conditions, this is the third consecutive quarter that it has achieved market share growth. In addition, despite the net loss, Coinbase disclosed adjusted EBITDA of $207.8 million, achieving the 14th consecutive quarter of positive adjusted EBITDA. Financial reconciliation items include stock-based compensation, investment-related crypto asset losses, and restructuring expenses.

CFO Alesia Haas said while discussing the quarter: "The Everything Exchange is generating real revenue, not just budding signs, and starting to generate tangible diversification benefits." She also pointed out that actual expenditures for each major cost category were below the median of the guidelines.

Expand U.S. stocks and derivatives business to respond to Michigan legal challenges

In addition to existing cryptocurrency exchanges, Coinbase has also expanded access to stocks, derivatives and event contracts. A report on July 24 pointed out that Coinbase, through its multi-asset platform expansion, provides commission-free stock and ETF trading services to eligible U.S. customers, available 24 hours a day, five trading days a week.

随着裁员14%后四名高层领导人的职位更替，Jesse Pollak将专注于Base底层区块链的发展，包括交易、支付和代币化等领域。9月3日，Coinbase宣布通过两项美国证券期货备案，计划向美国客户推出单股永续合约。文件显示，Coinbase Derivatives提交了Form 1-N，Coinbase Financial Markets提交了Form BD-N。根据SEC规则，交易所通知涉及证券期货交易注册，而经纪商通知则涉及有限目的的证券期货经纪交易商。Coinbase表示将与SEC和CFTC合作推进计划中的产品。

在预测市场业务方面，Coinbase主张联邦监管的事件合约属于CFTC的专属管辖权。该公司曾就Kalshi提供的体育合约问题起诉密歇根州总检察长Dana Nessel。然而，美国地区法官Shalina Kumar在8月6日的裁决中拒绝提供初步救济，未阻止密歇根州官员执行针对这些合约的州体育博彩法。Kumar法官认为，Coinbase未能证明其联邦优先权论点具有成功的可能性，并驳回了其关于遵守联邦衍生品规则和密歇根州体育博彩法不可能实现的 claim。

该命令仅解决了Coinbase的禁令请求，而非对基础诉讼作出最终判决，这意味着该公司未能获得其寻求的针对州执法的初步保护。