Coinbase (COIN) shares climbed 5.40% to $181.28 on Friday as Morgan Stanley raised its price target for Coinbase to $258 ahead of its next earnings report.
According to data from Google Finance, the stock climbed from an intraday low near $171 to a high of $182.45 before pulling back, lifting its market capitalization to approximately $47.7 billion.
The price target increase came as Wall Street analysts continued to assess Coinbase’s financial results and its plans to grow beyond its main cryptocurrency trading business.
Morgan Stanley raised its target from $250 to $258 but kept its Equal Weight rating. This means the bank increased its estimate of where the shares could trade but did not change its overall rating on the stock.
The latest update comes as financial technology and digital asset stocks face pressure from wider market uncertainty and concerns about interest rates. With companies preparing to release their third-quarter results, analysts are reviewing their expectations and looking at how businesses are handling changing market conditions.
Morgan Stanley raises its target as analysts review Coinbase
Morgan Stanley’s revised target is part of a wider reassessment of Coinbase by Wall Street firms. Citizens JMP also changed its forecast on Friday, cutting its price target from $325 to $280 while keeping its Market Outperform rating.
Although Citizens JMP lowered its target, the firm’s rating showed that it still expected Coinbase to perform well compared with the broader market.
Coinbase faces questions over revenue and losses
Coinbase’s recent financial results have also drawn attention. The company reported revenue of $1.22 billion, falling short of the $1.29 billion analysts had expected. Its revenue also dropped 18.5% compared with the same period a year earlier as cryptocurrency trading conditions weakened.
The company also reported an adjusted loss of $1.36 per share, larger than the $0.44 loss analysts had forecast. In simple terms, Coinbase lost more per share than the market had expected.
These results have made the company’s next earnings report important for investors and analysts. They will be watching to see whether Coinbase can improve its revenue and reduce its losses as it deals with changes in cryptocurrency trading activity.
Wall Street keeps different views on COIN
Other analysts have also changed their price targets. Baird raised its target from $130 to $205 but kept a Neutral rating. Barclays increased its target from $95 to $149 while maintaining an Underweight rating.
Wells Fargo began covering Coinbase with an Equal Weight rating and a $200 target, while Argus kept its Hold rating. Across analysts, Coinbase had an average Hold rating and an average price target of $224.29.
Coinbase also faces regulatory challenges as it expands. Michigan recently moved to stop the company from offering sports prediction markets in the state.
With its next earnings report approaching, investors will be watching whether Coinbase can improve its financial results, grow its newer services and manage the challenges facing its business.
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