Shares of Coinbase Global Inc. COIN, -1.15% fell 1.2% in premarket trading Tuesday, to extend its recent weakness, as Mizuho analyst Dan Dolev raised his price target but said he remained “skeptical” about the cryptocurrency trading platform’s medium-term prospects given heavy reliance on retail commissions. Dolev raised his price target to $315 from $285, but kept his rating at neutral. “Over time, COIN’s fees may face downward pressure from competing platforms following the footsteps of zero-commission stock trading,” Dolev wrote in a note to clients. “This is because platforms like PayPal and Cash App primarily use crypto trading as engagement tools.” Dolev noted that retail trading commissions represent 80% of sales. The stock, which went public on April 14 through a direct listing, has declined on 10 of the 13 trading sessions since then through Monday, to close Monday 10.3% below the April 14 closing price of $328.28. Over the same time, bitcoin BTCUSD, -1.32% had declined 8.8% and the S&P 500 SPX, +0.27% had gained 1.6%.
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