(Blockworks) Banking giant Goldman Sachs has rated Coinbase stock a “sell” with a price target of $45, from the previous $70.
Led by analyst Will Nance, Goldman says that the current crypto prices and trading volumes would weigh on the income of Coinbase.
Goldman expects Coinbase’s revenue to decline 61% in 2022 from the prior year. The revenue is expected to be down 73% in the second half of the year.
The analysts point out that the macro-outlook will continue to impact crypto fortunes, centralized and decentralized exchanges, and other heavyweights in the sector.
Goldman analysts further note that Coinbase must substantially reduce its cost base as retail trading activity wanes. The analysts project that Coinbase will reduce its staff even more.
The analysts are also less excited about Coinbase’s decision to sunset its professional trader-focused platform and bring all trading into a single application. They warn that such a move will reduce switching cost friction between the two platforms, potentially leading to fee rate compression.
COIN:NASDAQ is up +0.77%.
