The renowned investment bank Piper Sandler has rated Coinbase stock (COIN) neutral from overweight as it expects second-quarter trading volume to be the lowest in the past two years.

While Coinbase stock has been rallying post the BlackRock Exchange-Traded Fund (ETF) filings, several analysts are concerned about its future revenue.

Piper Sandler Downgrades Coinbase Stock Ratings 

Piper Sandler downgraded Coinbase’s rating from overweight to neutral and predicted a fall of over 20% from the current market price. As of writing, the stock trades at around $77, while the investment bank’s latest price target is $60.

Piper Sandler’s analyst Patrick Moley argues that the uncertainty around Coinbase makes it difficult to forecast future revenue. This is because the United States, one of the largest markets for Coinbase, has been under a strict crypto crackdown this year.

Moreover, the Securities and Exchange Commission (SEC) has filed a lawsuit against Coinbase, accusing it of acting as an unregistered broker.

Lowest Trading Volume in Two Years?

In 2023, the flagship cryptocurrency Bitcoin has rallied by over 80%. Simultaneously Coinbase stock is up by over 140%. The spot Bitcoin ETF filings by large asset managers such as BlackRock have catalyzed the rally.

But Moley is concerned about the exchange’s trading volume. He explains:

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Author: Harsh Notariya

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