Shares of Coinbase Global Inc. COIN, -6.67% sank 7.2% in afternoon trading Thursday toward yet another record low, after J.P. Morgan analyst Kenneth Worthington cut his stock price target by about 31%, citing lower crypto prices and “notably” lower volume that previously forecast. The crypto-trading platform’s stock reversed an earlier gain of as much as 4.3%, at the intraday high of $153.44 reached just minutes after the opening bell. Worthington lowered his price target to $258 from $296, but he reiterated the overweight rating he’s had on the stock since he started covering it in May 2021, as the new target still represents about 89% upside from current levels. “The cryptomarkets are in need of some excitement in terms of new products and/or new use cases to continue to drive the cryptomarkets to becoming more mainstream, thus driving activity levels,” Worthington wrote in a note to clients. He expects a “bigger loss” in the first quarter and the second quarter, given increased investment and the slower start to second-quarter trading volumes. The company is slated to report first-quarter results on May 10, with analysts surveyed by FactSet expecting, on average, earnings of 2 cents a share. The stock has plunged 45.9% year to date, while bitcoin BTCUSD, -0.08% has lost 10.4% and the S&P 500 SPX, -1.48% has slipped 7.3%.
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