Analyst trims Coinbase price target after market wipeout

Core Insights - Wall Street strategists remain cautious despite a rebound in cryptocurrencies and crypto-linked equities, with Citibank lowering its expectations for Coinbase due to ongoing volatility and regulatory uncertainty [1][5]. Company Overview - Coinbase, founded in 2012, is the largest U.S.-based crypto exchange and previously supported a bill aimed at clarifying crypto regulations [2]. - The company withdrew its support for a new draft version of the bill due to unfavorable provisions [3]. Stock Performance - As of the latest trading session, Coinbase's stock (COIN) was up 11.38% at $162.76, while still being 93% below its all-time high of $444 set in July 2025 [3]. - Year-to-date, COIN has declined by 31.12%, extending a 39.74% drop over the past 12 months [3]. Analyst Ratings and Forecasts - Citigroup analysts have reduced their price target for Coinbase from $505 to $400, citing weaker trading volumes and stalled legislation [5]. - Despite the lowered target, it still suggests a potential doubling from COIN's recent close at $146, with analysts maintaining a "Buy/High Risk" rating [5]. Revenue and Earnings Projections - Ahead of Coinbase's fourth quarter and full-year 2025 results, Citigroup has cut its revenue forecast by about 10% to $1.69 billion, which is approximately 4% below market consensus [7]. - Analysts now expect a GAAP loss of $2.64 per share for the quarter, factoring in a $2.3 billion mark-to-market decline on Coinbase's crypto holdings [7]. Legislative Outlook - The path to recovery for Coinbase may be prolonged, with expectations that Senate negotiations on the market structure bill could extend into 2026, delaying clarity for digital asset companies [6].