JPMorgan analyst Ken Worthington lowered the price target for Coinbase (COIN) to $290.
The revision represents a 27% reduction from the previous $399 target. The bank maintained its overweight rating on the stock.
Worthington cited a weakening cryptocurrency trading environment as the primary driver for the cut. The bank anticipates a significant year-over-year decline in earnings. This outlook reflects lower trading volumes and diminished market capitalizations across the digital asset sector.
Subscription and services revenue is expected to fall below previous company guidance. Analysts attributed the shortfall to soft cryptocurrency prices and declining staking yields. Slower growth in the USDC stablecoin also weighed on the revised expectations.
Coinbase shares fell in premarket trading following the report.