Morgan Stanley analyst Michael Cyprys downgraded Coinbase Global stock from Equal Weight to Underweight on November 2, 2026. The bank reduced its price target for the company to $120, down from the previous target of $258. This adjustment follows the stock closing at $143.54 on October 30.
The bank lowered its revenue forecasts for Coinbase by 28% for 2027 and by 18% for 2028. Adjusted EBITDA projections saw steeper cuts, falling by 47% for 2027 and 25% for 2028. Morgan Stanley now expects normalized 2028 EBITDA to reach $2.4 billion, which is 14% lower than 2025 levels.
Analysts attributed the bearish outlook to weak trading trends and a soft revenue outlook. The bank also reduced the EBITDA multiple applied to the company from 20x to 12x. These revisions follow the company's third-quarter earnings report released on October 30, which failed to meet expectations.
The downgrade aligns with similar actions taken by other financial institutions in late October. Market uncertainty has been further exacerbated by a security breach at Binance, which contributed to a decline in overall trading volumes across the sector. Trading activity remains a primary driver of Coinbase valuation.
