Coinbase Downgraded to Neutral: Take Profits After Big Run Higher

• DA Davidson downgraded Coinbase to Neutral from Buy after a 108% surge in stock price
• Analysts cite regulatory concerns and Q4 earnings as reasons for the downgrade
• Despite the downgrade, analysts are still bullish on Coinbase’s long-term prospects

DA Davidson Downgrades Coinbase

DA Davidson recently downgraded Coinbase (COIN) from buy to neutral, citing increasing regulatory concerns and worries about the company’s upcoming fourth quarter earnings. The stock has surged by 108% this year, pushing it past analyst Chris Brendler’s $55 price target.

Regulatory Concerns

The recent FTX debacle is raising questions among regulators and analysts alike. While it appears that there have been no major ripple effects so far, the regulatory response is just beginning. As such, Coinbase may be in a better position than others due to its higher level of clarity but Brendler warns that near-term outlook looks “increasingly treacherous.”

Q4 Earnings Worries

The upcoming Q4 earnings report could show weakness in assets under management and interest income, leading analysts to take some money off the table ahead of its release on February 21st.

Price Target Increase

Despite the downgrade, Brendler increased his price target on COIN to $60 from $55. He remains confident in Coinbase’s long-term prospects despite near-term uncertainty.


Coinbase shares have seen a massive surge this year alongside a broader rally in cryptocurrencies which saw Bitcoin reach an all time high of $25,000 earlier today. DA Davidson has taken a more cautious stance with their downgrade of Coinbase but remain confident in its long-term prospects despite near-term volatility and uncertainty.