Coinbase Plunges After BofA Slam Over Code Listing

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By Laura Sanchez – Crypto platform Coinbase (NASDAQ:) fell more than 5% in pre-opening on Wall Street on Monday after plunging more than 7% last Friday.

Bank of America (NYSE:) has downgraded the buy exchange to neutral due to the FTX collapse and risks that could affect Coinbase.

The investment bank has also cut its price target to $50 from the previous $77.

So far in November, Coinbase shares have plunged nearly 30%.

While BofA is confident that Coinbase is not another FTX, that does not “make the company immune to the broader consequences in the cryptocurrency market,” the bank notes.

“The analyst team sees three possible headwinds: lower business activity thanks to weaker confidence in cryptocurrencies, delayed regulatory clarity, and the possibility that contagion causes even broader consequences for the industry,” they explain. analysts, as echoed by Coindesk.

The Bank of America downgrade has been a real setback for Coinbase, considering that the bank had been bullish on other occasions. In January 2022, he gave the stock a Buy rating and a $340 price target.

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