Freedom Broker cuts Coinbase stock price target on weak Q2 results
Freedom Broker cut its Coinbase Global (COIN) price target to $185 from $225 and kept a Buy rating after Coinbase’s Q2 results. Coinbase reported diluted GAAP EPS of -$1.36 (vs -$0.44 expected) and adjusted EPS of -$0.40 (vs +$0.12). Revenue was $1.22B, down 14% sequentially and below $1.29B Street estimates. Q3 guidance and run-rates also missed expectations.
How this was made
The 30-second read
Why it matters
The new actionable element is the specific price-target reduction tied to quantified earnings and guidance misses, which can influence near-term positioning and risk premia for COIN.
Market read
COIN faces renewed downside pressure as analyst targets adjust to weaker profitability metrics and below-consensus transaction revenue and subscription/services guidance.
What to watch
The article notes an all-time high market share (10.3%) despite lower spot volumes; that mix could help stabilize revenue if market activity rebounds.
Background
The piece centers on Freedom Broker’s post-Q2 analyst action and summarizes Coinbase’s Q2 financials and Q3 outlook.
Ticker impact
Freedom Broker cut Coinbase’s price target to $185 from $225 after Q2 results showed GAAP and adjusted EPS misses and weaker revenue/guidance.
Bias toward continued downside or underperformance versus prior expectations until Q3 revenue and subscription/services guidance stabilize.
The article cites specific Q2 misses (GAAP EPS -$1.36 vs -$0.44; adjusted EPS -$0.40 vs +$0.12; revenue $1.22B vs $1.29B) plus weaker Q3 run-rate and guidance, prompting a lower PT despite a Buy rating.
Market effects
Reinforces broader caution on crypto-exchange profitability sensitivity to trading volumes and market volatility.
Limited, primarily affects US-listed crypto-asset exchange sentiment.
Moderate, as Coinbase is a key US proxy for retail/institutional crypto trading activity.
Counterpoint
Despite the PT cut, the firm maintained a Buy rating, and expenses declined 9% QoQ, which could support a faster path to operating leverage if volumes recover.
Key entities
- companyCoinbase Global Inc.
US-listed crypto exchange whose Q2 results and Q3 outlook prompted a price-target cut to $185 from $225.
- analyst_firmFreedom Broker
Maintained a Buy rating while lowering its Coinbase price target after Q2 results.
