Goldman Sachs and JPMorgan suggest moving away from this exchange

Goldman Sachs JPMorgan
  • The two financial giants have warned investors not to bet on shares linked to digital assets until the “crypto winter” is over.
  • The two banks pointed to Coinbase, which lost more than $1 billion in the second quarter of the year alone.
  • However, not all analysts are bearish on the exchange. Some even raised the target price and have good prospects for 2023.
  • Coinbase recently partnered with BlackRock, the world’s largest asset manager, with currently $10 trillion in assets under management.

There are many analysts who claim that the cryptocurrency market is going through a “winter”, despite the rally in recent weeks.

That is why members of Goldman Sachs and JPMorgan warned investors to stay away from those actions linked to cryptocurrencies and especially pointed to one, the Coinbase exchange.

Why did they make this claim? It is that Coinbase reported in its earnings report that it lost more than 1,000 million dollars only in the second quarter of this year.

Like other exchanges, Coinbase suffered from the downfall of the entire crypto market. It should be noted that Bitcoin, the most traded crypto on the platform, fell back from its ATH of $69,000 to $24,000, which is trading today. So much so that the company saw its assets lose in the previous quarter, which went from 256,000 million to 96,000 million dollars

What do analysts think about Coinbase?

Goldman Sachs’ Will Nance thinks support for the stock’s valuation will remain “somewhat limited” given the company’s cash drain.

“While we believe management has navigated the turbulence in the crypto markets well in terms of generating liquidity during the bull market and not taking on undue counterparty risk, we expect equities to underperform as long as retail commitment to crypto remains low. weak and regulatory uncertainty in the US remains”


The Goldman analyst, however, raised Coinbase’s 12-month price target from $45 to $51. That represents a loss of nearly 42% since Tuesday’s close.

This Wednesday the shares rose 4% to 91 USD and, although they have increased 71.5% in the last month, they still accumulate a drop of 63.9% in 2022.

JPMorgan’s Kenneth Worthington also has a grim” outlook for Coinbase. The target price for the analyst is 91 USD, exactly what he is quoting today.

Separately, Keefe, Bruyette & Woods downgraded its rating with a $45 price target, saying investors should expect some signs of stabilization in Coinbase’s business.

″With retail falling from previous high levels, regulation likely to increase and new competitors continuing to jump into this sector, we remain cautious until we feel more comfortable that the business and industry have weathered some of these bumps in the future. road to wider adoption

Analyst Kyle Voigt.

Not all are bears

Coinbase is also surrounded by analysts and investors who are hopeful about the company and cryptocurrencies.

Needham’s John Todaro said he expects the stock to remain range bound “before resuming a general bullish trend in 2023 with a modest increase in volatility“. Similarly, and despite the fact that the analyst has a buy rating, he established a target price of 89 USD, lower than today’s price.

“We expect COIN to grow new token listings and launch more products in subscription and service verticals to diversify its revenue stream and see initial adoption in NFTs. Under this scenario, we believe the stock should be valued at a 6.5x EV/revenue multiple of our FY2022 estimate.”


Lisa Ellis of MoffettNathanson claimed that Coinbase will be able to get through the “crypto winter” as it has enough cash. Following this, the analyst reiterated her buy rating with a 12-month price target of $200.

“We are bullish on cryptocurrency technology; although it is still in its infancy, we believe it is one of the most disruptive technological innovations in decades, with relevance in a wide range of use cases”