Key insights
- Needham lowered its price target on Coinbase to $220 from $230, citing continued crypto weakness and lowered estimates for 2026 and 2027. While maintaining a Buy rating, the firm acknowledges that institutional adoption may not offset the crypto downturn. Other analysts have also revised earnings downwards, reflecting skepticism about Coinbase's near-term performance despite diversification efforts.
Investing.com - Needham lowered its price target on Coinbase Global (NASDAQ:COIN) to $220 from $230 while maintaining a Buy rating on Thursday.
The firm said Coinbase posted revenues of $1.4 billion, in line with expectations, but narrowly missed on adjusted EBITDA of $404 million compared to the Street estimate of $408 million. The cryptocurrency exchange, valued at a market cap of $50.8 billion, faces mounting analyst skepticism, with InvestingPro data showing 13 analysts have revised their earnings downwards for the upcoming period. Transaction revenues missed estimates, though retail activity shifted more toward Consumer away from Advanced and declined less than Institutional, implying the everyday retail trader showed some resilience.
Coinbase now has 12 products over $100 million in annualized revenue, and Prediction Markets is on track to become the 13th as the company attempts to diversify revenue to offset crypto weakness. Management appeared accepting of recent Clarity Act text, and there is a workaround for activity-based rewards on stables that would allow continued USDC payments.
Needham lowered its 2026 and 2027 estimates on continued crypto weakness, which the firm does not see being offset by institutional adoption even if Clarity passes.
The analyst wrote that the firm lowered its price target to $220 per share based on the reduced estimates.
In other recent news, Coinbase Global reported disappointing financial results for the first quarter of 2026, missing both earnings and revenue forecasts. The company posted an earnings per share of -$1.49, significantly below the expected $0.29, and revenue fell short at $1.4 billion compared to the anticipated $1.56 billion. Despite these results, Rosenblatt reiterated a Buy rating with a $240 price target, acknowledging the weak performance but maintaining optimism about the company’s future. Piper Sandler, however, lowered its price target for Coinbase to $170 from $180, citing near-term challenges in transaction revenues and low trading activity. In contrast, Circle Internet Group received a buy rating from Aletheia Capital, which set a price target of $145. Analyst Brooksley Kang highlighted Circle as "a regulatory toll booth on the digital dollar" and noted its unique position as a fully-regulated, public-market stablecoin pure-play. These developments reflect the dynamic nature of the cryptocurrency market and the varied analyst perspectives on key players within the industry.
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