Morgan Stanley cuts Coinbase price target to $120 from $258 after weak Q3
Morgan Stanley halves its Coinbase price target to $120
Investment bank Morgan Stanley turned bearish on Coinbase (COIN) on Monday, cutting its price target from $258 to $120 — a drop of about 53%. Coinbase is a cryptocurrency exchange, a platform where people buy and sell digital assets.
Analyst Michael Cyprys made the cut in a Monday report, citing recent trading trends, a softer revenue outlook, and uncertainty in the crypto market after a $6.3 billion hack of Binance, a rival exchange.
The bank still sees Coinbase as one of the strongest competitors in crypto. However, it expects the company's profits to recover more slowly than previously forecast, which the report says puts further pressure on the share price.
Key numbers behind the downgrade
- Price target cut: $258 to $120, roughly 53% lower, announced Monday, Nov. 2, 2026.
- Coinbase's third-quarter net revenue fell about 34% year-over-year to $1.16 billion, reported Oct. 29.
- Net income was $719 million, largely driven by gains on cryptocurrency investments; adjusted net income was $78 million.
- Coinbase shares fell more than 13% in midday trading on Friday after the earnings report, amid the fallout from the Binance hack.
- On Monday the stock extended losses, dropping more than 3.3% to $138 at the time of writing, per Yahoo Finance data.
The sell-off spread beyond Coinbase
Coinbase's earnings report on Oct. 29 triggered a sell-off in crypto-linked stocks on Friday. Circle shares declined more than 9%, while Strategy fell about 8%, alongside Coinbase's 13% drop.
What is confirmed and what is opinion
Confirmed: The price target cut to $120, the analyst's name, the Q3 revenue and income figures, the share price moves on Friday and Monday, and the timing of the earnings report are all reported by Cointelegraph, with the share price attributed to Yahoo Finance data.
Analyst opinion: The view that Coinbase's profits will recover more slowly than expected, and that the stock faces further pressure, is Morgan Stanley's forecast from its Monday report — not a confirmed outcome. The report's reasons (trading trends, softer revenue outlook, Binance hack uncertainty) are the bank's stated rationale.
Why this matters for crypto market watchers
The downgrade ties Coinbase's revenue prospects to two pressures the source material identifies: slowing trading activity on the exchange and lingering market uncertainty after Binance's $6.3 billion hack. It also shows the impact spilling into related companies, with Circle and Strategy shares falling alongside Coinbase on Friday.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.