Coinbase Price Target Lowered by BofA

BofA Securities has lowered its price target for Coinbase Global Inc. from $363 to $311 while maintaining a hold rating on the stock.

Analyst Insight

Analyst Mark McLaughlin, CFA, from Bank of America Securities, stated that this adjustment follows Coinbase’s strong earnings report fueled by a favorable crypto market and increased on-chain activity. However, he expressed concerns regarding the sustainability of this momentum, as growing competition could drive fees down, impacting Coinbase’s short-term profits.

Despite the U.S. Securities and Exchange Commission (SEC) dropping its lawsuit against Coinbase, significant risks still loom. In 2023, the SEC had accused Coinbase of operating an unregistered securities exchange and offering unregistered securities. This case was one of the largest crypto-related enforcement actions under the previous chair, Gary Gensler.

Market Reactions

Following the price target reduction, Coinbase shares fell 5.46% in after-hours trading, settling at $215.85, according to Google Finance.

The price revision occurs amid a turbulent crypto market, which has seen $1.49 billion in liquidations in the last 24 hours, according to CoinGlass. Bitcoin has dropped below $89,000, marking its lowest level since Q4 2024. Analysts at Matrixport have warned that this decline may persist, especially with low trading activity hindering demand for dip-buying.

Additionally, Spot On Chain analysts caution that Ethereum might be on track for its worst February due to macroeconomic uncertainties, including potential new tariffs from the Trump administration.

Further Reading: Coinbase CPO urges U.S. Congress to act on crypto regulation.