Analysts Slash Coinbase Targets as Crypto Weakens and Binance Hack Jolts Confidence

What analysts changed

Morgan Stanley's Michael Cyprys shifted Coinbase to underweight from equal-weight on Monday and slashed his target to 120 dollars, cutting it by more than half. He also marked down his revenue outlook, trimming 2027 by 28% to 6.4 billion dollars and 2028 by 18% to 6.6 billion dollars. In a Nov. 2 note, he wrote, "The incident could weigh on confidence in centralized crypto platforms, potentially leading to reduced retail engagement, softer trading activity and slower institutional adoption," and said there's potential for greater regulatory scrutiny.

Monness, Crespi, Hardt & Co.'s Gus Galá, who has a sell rating, was blunt: "I don't know that we saw the bottom yet." He expects today's challenges to spill into the coming months and added, "Really 2027 is a lost year."

How the market and forecasts shifted

Consensus now sits at 6.51 billion dollars for 2027 revenue and 7.81 billion dollars for 2028, according to Bloomberg data. The average analyst price target has fallen 48% this year as weaker crypto prices have crimped trading revenue. Year to date, Coinbase's stock has dropped in excess of 39%, and analysts now project an adjusted loss of 48 cents per share for this year, compared with expectations a year ago for earnings of more than 7 dollars per share.

The shock from the Binance attempt and the policy backdrop

Hackers tried to siphon 6.3 billion dollars from Binance in late October in what was described as the largest crypto theft on record. Coinbase had no exposure to the incident, but its stock fell 11% the following day as token prices slid and security worries flared. Cyprys said the fallout could damp engagement on centralized platforms, and Galá voiced the same concern.

Policy momentum also slipped. In the midterm elections on Tuesday, the crypto-friendly Republican party suffered a decisive defeat. With US crypto market structure legislation already stalled, Galá said getting a bill through will be tough and that "the version of legislation that you get in 2027 through 2028 is very different than what you would've gotten 2025 to 2026."

Market uncertainty reminds investors that better tools can make smarter decisions over time. We're hosting our first ever investor livestream on 11/17 to show you how to use ChatGPT and Claude to invest like a pro, hosted by Briefs Finance CEO Jaspreet Singh. Save your seat.

Why this matters for your portfolio

Coinbase is contending with lower Bitcoin prices, softer volumes and a legislative standstill, and now faces fresh hits from the Binance shock and shifting political winds. The bottom line: expectations for an earnings recovery have weakened, and the Street has marked down both price targets and long range revenue, which shapes how the market values the stock in the near term.

Embracing thoughtful new approaches can help investors stay confident through changing conditions. On 11/17, our CEO Jaspreet Singh goes live for our first ever investor livestream on how to use ChatGPT and Claude to invest like a pro. Register to join him.