By Sam Boughedda
Investing.com -- Coinbase Global Inc (NASDAQ:COIN) shares fell 1.7% on Wednesday after JPMorgan slashed its price target to $345 per share from $447 Wednesday, citing a “meaningful decline in cryptocurrency prices.”
JPMorgan analyst Kenneth Worthington kept an overweight rating on the shares. Ahead of its earnings release, the analyst raised fourth-quarter estimates on “better than previously modeled trading volume yielding increased commissions and transactions fees.”
Worthington explained that they expect Coinbase's staking revenue will continue to rise, reflecting greater sophistication of Coinbase customers and thus greater use of staking services.
However, full-year 2022 forecasts have been lowered “due to materially lower cryptocurrency prices in 1Q22.”
“While we continue to expect greater development and utilization of the blockchain and FY cryptocurrency technology, we see the lower prices as weighing on Coinbase value traded and thus weighing on revenue and earnings. We are modeling $1.6tr of trading volume in 2022 vs. our prior projection of $1.7tr," added Worthington.
Coinbase shares are down more than 30% in 2022.