Is the Party Over? Coinbase Faces Potential Threat from DEXs, Analyst Says
Portfolio Pulse from Anusuya Lahiri
Coinbase shares are trading lower after the SEC prosecuted Binance over U.S. securities violations. Needham analyst John Todaro reiterated a Buy rating for Coinbase with a $70 price target. He believes that retail percentage of total volume will be lower in Q2 FY23 than in Q1 FY23 and that decentralized exchanges (DEXs) pose a real threat to Coinbase.
June 05, 2023 | 7:31 pm
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NEGATIVE IMPACT
Coinbase shares are trading lower due to SEC prosecution of Binance and potential threat from DEXs. Needham analyst John Todaro maintains a Buy rating with a $70 price target.
The SEC's prosecution of Binance over U.S. securities violations has negatively impacted Coinbase's stock price. Additionally, the analyst's concerns about lower retail volume in Q2 FY23 and the potential threat from decentralized exchanges (DEXs) like Uniswap further contribute to the negative short-term impact on Coinbase's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100