Jamming (COIN) was demoted to a sales point sales note, which has also reduced its end -of -year course target from $ 330 to $ 248, citing lower than expected profits and discoloration of cryptographic actions as key risks.
Coin is negotiated modestly higher on Monday at $ 316 after an 18% plunge linked to last week’s profits.
“Although we were constructive on the current crypto cycle, we expect a 3q jerky alongside the weak seasonality in August / September and by declining the interest of retail in the cryptographic treasury actions”, analysts wrote. “We are also expecting an increase in stablecoin competition to weigh on corner and CRCL assessments in 2h25.”
Coinbase missed expectations for the second quarter results, and trends at the beginning of the third quarter are not much better. Subscription and services income, a metric, investors consider a reliable flow of income, came 8% below Wall Street estimates in the second quarter. The median point of the company’s quarter forecasts is also 5% below consensus.
“` `Others returned” was a key contributor to the Miss 2q / 3q by corner, “wrote Compass, indicating a clear drop in a quarter of Quart de Coinbase One and other costs related to technology – segments that many investors had hoped to lead to long -term growth.
The degradation of Compass Point occurs while the cryptography market loses its momentum despite the broader stock markets after the drop in last week. Bitcoin
And Ethereum has struggled to gain ground, and retail investors seem to withdraw from “Treasuryco” actions – companies with large amounts of BTC or other cryptos on their balance sheets. This includes coinbase and strategy (MSTR)The latter recently slowed down its rate of purchase of Bitcoin and moved to fundraising thanks to favorite equity rather than stock offers.
Analysts reported that the high lever effect on cryptographic markets has another risk. The July rally was fed by aggressive exchanges, but with a bouncing open interest after a short drop in liquidations, a deeper sale could trigger another forced sales cycle.
Evaluation is also a concern. Despite the low results of the T2, corner actions joined 56% from May to July. Compass Point warns that “Coin is still negotiated at 44x canceled forecasts from the EBITDA 3Q25E Street”, which, according to her, is too high given the opposite winds in retail, competition from ETF and DEFI, and regulatory breakthroughs in the limited short -term.
Compass Point was also doubtful that the Clarity Act – a bill considered to be the key to regulatory reform – would adopt this year. “We are more skeptical of a bill on the structure of the market this year,” said the firm, projecting the movement at the beginning of 2026.
Coinbase has launched the idea of offering action operations to users, but analysts are not convinced, it will be a significant source of income, in particular with competitors like Robinhood already far.
“In a context of weak cryptography performance, we see the premium corner re -evaluation compressing towards its previous reach,” concluded the report.
