Coinbase (COIN) It has been degraded to a sales rating by Compass Point, which also reduced its year -end -year price from $ 330 to $ 248, citing weaker profits from what is expected and interests that are fading in cryptography actions as key risks.
Coin is modestly quoted on Monday at $ 316 after the 18% drop related to the profits last week.
“While we are still constructive in the current cryptographic cycle, we expect a 3Q strengthened together with the weak seasonality of August/September and decreasing retail interest in the actions of the cryptographic treasure,” analysts wrote. “We also hope that the increase in Stablecoin competition despite both coins assessments and CRCL in 2h25”.
Coinbase lost the expectations of the results of the second quarter, and the early tendencies of the third quarter do not look much better. Subscription and services income, which metric investors see as a reliable income flow, reached 8% below Wall Street estimates in the second quarter. The midpoint of the company’s Q3 is also 5% below the consensus.
“‘Other S&S income’ was a key taxpayer to the 2T/3Q fault of Coin,” Compass Point wrote, pointing out a strong decrease in quarter to quarter in coinbase one and other technology -related rates, segments that many investors hoped to boost long -term growth.
The compass point reduction occurs when the encryption market loses impulse despite the fact that the broader values markets recover after the immersion of last week. Bitcoin
And Ethereum has struggled to gain ground, and retail investors seem to be withdrawing from the shares of “Treasuryco”, companies that have large amounts of BTC or other crypts in their balances. This includes coinbase and strategy (Mstr)The last of which recently slowed its Bitcoin purchase rhythm and changed to the collection of funds through preferred equity instead of shares of shares.
Analysts marked that the high leverage in cryptography markets raises additional risk. The July rally was driven by aggressive trade, but with an open interest recovery after a brief sauce in liquidations, a deeper sales sale could trigger another forced sales round.
The assessment is also a concern. Despite the weak results of Q2, currency shares were recovered from 56% from May to July. Compass Point warns that “Coin is still traded at 44x Annualized 3T25E Street Ebitda Forecast”, which believes that it is too high given winds against in retail trade, competition of ETF and Defi, and regulatory advances in the short term limited.
Compass Point also doubted that the clarity law, a bill seen as a key to regulatory reform, would be approved this year. “We are more skeptical with a market structure bill that passes this year,” said the firm, projecting the movement in early 2026.
Coinbase has presented the idea of offering the trade of shares to users, but analysts are not convinced that it will be a significant income flow, especially with competitors such as Robinhood already far ahead.
“Under a weak cryptographic performance backdrop, we see Coin’s premium assessment that is compressed towards its previous range,” the report concluded.
