The recent plunge in cryptocurrency prices has at least one major Wall Street firm staying on the sidelines for some crypto-linked stocks.
Goldman Sachs analysts on Monday downgraded shares of Coinbase (COIN) to Sell from Neutral, slashing their price target on the stock to $45 from $70.
In the same note, the firm upgraded shares of Robinhood (HOOD) to Neutral from Sell. Both companies offer cryptocurrency trading as a core part of their business.
“We believe current crypto asset levels and trading volumes imply further degradation in COIN’s revenue base,” Goldman Sachs analyst Will Nance wrote in a note Monday. The firm expects Coinbase’s revenue will fall 61% in 2022, following a 514% surge in sales last year as Bitcoin and other cryptocurrency prices soared to record highs.
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