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Cowen Downgrades Coinbase Stock, Citing Trading Volume Declines
The firm said it's not clear whether trading will recover after the collapse of FTX.
Updated May 9, 2023, 4:05 a.m. Published Jan 5, 2023, 12:17 p.m.
Cryptocurrency exchange Coinbase (COIN) shares were downgraded to market perform from outperform by investment firm Cowen, which cited the lack of clarity on a possible recovery in trading volumes following the collapse of rival exchange FTX.
Cowen also cut its price target on the shares to $36 from $75. The stock was down 1.5% to $37.14 in premarket trading. It fell 84% in 2022.
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The fallout from the collapse of Sam Bankman-Fried's exchange FTX will potentially result in sterner scrutiny from the U.S. Securities and Exchange Commission, while depressed crypto valuations will cause muted retail trading activity.
"COIN's business is significantly correlated to crypto asset prices, trading volumes and volatility," analysts Stephen Glagola and George Kuhle wrote in a note.
"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," they said.
Read more: Cathie Wood Buys More Coinbase Shares on the Cheap
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French Banking Giant BPCE to Roll Out Crypto Trading for 2M Retail Clients
The service will allow customers to buy and sell BTC, ETH, SOL, and USDC through a separate digital asset account managed by Hexarq.
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- French banking group BPCE will start offering crypto trading services to 2 million retail customers through its Banque Populaire and Caisse d’Épargne apps, with plans to expand to 12 million customers by 2026.
- The service will allow customers to buy and sell BTC, ETH, SOL, and USDC through a separate digital asset account managed by Hexarq, with a €2.99 monthly fee and 1.5% transaction commission.
- The move follows similar initiatives by other European banks, such as BBVA, Santander, and Raiffeisen Bank, which have already started offering crypto trading services to their customers.
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