Bernstein Lowers Price Target on Coinbase Global, Citing Sluggish Growth Outlook

Bernstein has reduced its price target for Coinbase Global (COIN) to $180 per share, down from $240, marking a 25% decrease in the firm's valuation estimate. The adjustment comes amid growing skepticism over Coinbase’s ability to sustain revenue growth, particularly as trading volumes remain subdued and regulatory scrutiny intensifies across key markets. The firm cited declining user activity and increased competition from both established fintech platforms and decentralized exchanges as key headwinds. The revised target reflects Bernstein’s updated model assumptions, which now project COIN’s annual revenue to grow at a compound rate of 6% over the next three years—significantly below previous expectations of 12%. This slowdown is attributed to macroeconomic pressures, reduced retail participation in crypto, and a shift toward fee-based services that may not fully offset losses in transaction volume. The downgrade impacts a broad investor base, particularly those with exposure to digital asset infrastructure and fintech equities. As of the latest trading session, COIN was trading at $176.30, suggesting the new target is close to current market levels. Institutional investors and retail traders are likely reassessing their positions in response to the revised outlook. Market participants are also watching for signs of strategic shifts at Coinbase, including potential expansion into new product lines such as custody services and staking, which could influence future performance. However, Bernstein remains cautious, noting that without significant user acquisition or margin improvements, the stock may face continued downward pressure in the near term.