- The organization reduced the target value of the stock exchange to $65
- The company’s rating fell from Buy to Neutral.
- Citigroup explained this assessment by the current problems of the company, including the threat of a lawsuit from the SEC.
On Monday, May 1, Citigroup analyst Peter Christiansen published a report on the Coinbase cryptocurrency exchange. While the platform remains “one of the leaders in the industry,” its rating has been downgraded to “neutral.”
In addition, the agency established new target price for Coinbase shares at $65 instead of $80. This indicator reflects a fair assessment of securities against the backdrop of a historical maximum and the situation on the market.
In practice, this means that the real yield of derivatives has declined. In addition, a neutral rating means that Citigroup does not recommend investing in this position, at least not yet.
The organization explained its decision by the current problems of the company. The threat of a lawsuit from the SEC (Securities and Exchange Commission), the proceedings on the case of insider trading and the consequences of the banking crisis have significantly hit the “prestige” of the exchange.
Interestingly, some other analysts have priced Coinbase shares significantly higher. For example, Morningstar’s Michael Miller set a $80 price target, and CPRM’s Chase White and Joe Flynn set a $100 price target.
We also previously reported that Cathy Wood from Ark Invest continues to buy securities of the exchange. And HC Wainwright, on the contrary, raised the rating of Coinbase, responding to the beginning of the “crypto spring”.