Coinbase Global (NASDAQ:COIN) had its price target decreased by Citigroup from $350.00 to $270.00

Citigroup decreased its price target on shares of Coinbase Global (NASDAQ:COIN) from $350.00 to $270.00 in a research note issued to investors on Friday morning, Benzinga reports. The brokerage currently has a buy rating on the cryptocurrency exchange’s stock. According to Citigroup, the price target reduction is in anticipation of slower revenue growth in 2024.

"We are modeling lower revenue in 24 (implied in Citigroup's model—not consensus) given: 1) weaker macro impacting user activity and trading volumes (Citigroup expects weaker performance in 4Q on this front); 2) timing of new product launches; and 3) anticipation of slower growth in newer revenue streams (interest income, subscriptions) as these businesses scale up (Citigroup's models are running slightly high on new revenue streams). This lower revenue model flows through to lower earnings and valuation. Citigroup is also adjusting its price target to $270 from $350 on shares of Coinbase Global after cutting its 2024 revenue estimates.

"Citigroup is modeling lower revenue in '24 (implied in Citigroup's model—not consensus) given: 1) weaker macro impacting user activity and trading volumes (Citigroup expects weaker performance in 4Q on this front); 2) timing of new product launches; and 3) anticipation of slower growth in newer revenue streams (interest income, subscriptions) as these businesses scale up (Citigroup's models are running slightly high on new revenue streams). This lower revenue model flows through to lower earnings and valuation.

"Citigroup is incrementally less optimistic on the cadence of new product launches in 2024. Citigroup had expected more rapid development of institutional products and services, which may be slower than anticipated. Additionally, Citigroup notes that the timing of new product launches could impact the rate of revenue growth.

"Citigroup's analysis indicates that the market is pricing in a "U-shaped" recovery scenario for Coinbase's revenue in 2024. Citigroup's own modeling suggests that a more "L-shaped" recovery trajectory might be unfolding, which could have implications for the stock's valuation.

"Overall, Citigroup's analysis anticipates slower revenue growth for Coinbase in 2024, leading to a lower price target on the stock. The brokerage remains bullish on the cryptocurrency exchange and continues to recommend buying the shares.

Here are several analysts' ratings on Coinbase Global in recent months:

Compass Point reiterated a “sell” rating and set a $180.00 target price on shares of Coinbase Global in a research note on Monday, April 28th.

Barclays reduced their target price on shares of Coinbase Global from $328.00 to $169.00 and set an “equal weight” rating for the company in a research report on Monday, April 7th.

Cantor Fitzgerald initiated coverage on shares of Coinbase Global in a report on Tuesday, April 8th. They issued an “overweight” rating and a $245.00 price target on the stock.

Sanford C. Bernstein upgraded Coinbase Global to a “strong-buy” rating in a research note on Tuesday, March 18th.

HC Wainwright reissued a “buy” rating and issued a $350.00 target price on shares of Coinbase Global in a research report on Friday, February 21st.

One analyst has rated the stock with a sell rating, eight have issued a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $285.95.

Get Our Latest Stock Report on COIN

Coinbase Global Price Performance

Coinbase Global (NASDAQ:COIN – Get Free Report) last released its quarterly earnings results on Thursday, February 13th. The cryptocurrency exchange reported $3.39 earnings per share for the quarter, topping the consensus estimate of $0.46 by $2.93. Coinbase Global had a net margin of 39.34% and a return on equity of 20.64%. As a group, analysts anticipate that Coinbase Global will post 7.22 earnings per share for the current fiscal year.

Insider Activity at Coinbase Global

In other Coinbase Global news, insider Paul Grewal sold 10,978 shares of the stock in a transaction that occurred on Tuesday, February 25th. The shares were sold at an average price of $211.93, for a total transaction of $2,