Investment Bank Cowen Downgrades Coinbase Stock

Cryptocurrency exchange Coinbase (COIN) stock has been downgraded by analysts of Cowen (COWN), citing the lack of clarity on trading volume recovery after the FTX collapse.

Cowen downgraded COIN to perform in line with the market, as opposed to outperforming it, in a research note by analysts Stephen Glagola and George Kuhle. The investment bank also cut its price target to $36 from $75.

"COIN's business is significantly correlated to crypto asset prices, trading volumes, and volatility," they wrote. "COIN's monthly trading volumes have seen a fairly consistent drawdown each subsequent month since November 2021, and there remains low visibility into either a stabilization or rebound in retail trading volumes over 2023 given the macro backdrop and FTX contagion risks on crypto asset prices."