Coinbase Global Inc.’s COIN, +0.60% stock price target was cut to $42 from $45 at Mizuho Securities on Thursday amid concern about the crypto broker’s market share.
“COIN continues to lose market share in July,” wrote Mizuho analyst Dan Dolev. “Its market share amongst 30 of the largest global exchanges averaged just 2.9% in July, far below the heydays of 2021, and below 1Q’s 5.4%.” The market share change likely places Coinbase outside the top 10 exchanges as measured by global volume, according to Dolev. “Despite the specter of anemic volumes, we believe consensus continues to overestimate COIN’s revenue generation power,” he added. Mizuho maintained its neutral rating on Coinbase. The exchange is attracting plenty of attention from analysts. Earlier this week D.A. Davidson’s Christopher Brendler cut his Coinbase target to $90 from $135, citing falling trading volume, but reiterated the buy rating he’s had on the stock since it went public in April 2021. Last month Goldman Sachs downgraded Coinbase’s stock to sell from neutral, warning that it could see “further degradation” of its revenue base. Coinbase shares were down 1.3% to $52.41 in pre-market trading. The stock has plunged 79% this year, while Bitcoin BTCUSD, -0.37% has fallen 57.3% and the S&P 500 [s:spx] has declined 20.2%.