Morgan Stanley Just Downgraded COIN Stock. Here's Why.

Coinbase (COIN) stock has been in a huge downtrend in 2026, but Morgan Stanley analyst Michael Cyprys cautions against betting on a swift recovery. In a research note yesterday, Cyprys downgraded COIN to “Underweight” and trimmed his price target of $120, indicating potential downside of another 12% from current levels. 

His bearish call is particularly significant given Coinbase shares are already trading down roughly 45% versus their year-to-date high. 

Morgan Stanley’s Bearish View on Coinbase Stock

Cyprys expects sentiment to remain subdued in the wake of the recent $6.3 billion Binance hack. The analyst had originally expected crypto price recovery, higher retail engagement, and broader product adoption to help COIN shares. 

While management continues to execute on its strategy, “recent trading trends, a software sales outlook and uncertainty around the crypto backdrop” now warrant caution in playing Coinbase at current levels, he told clients. 

Barchart data also seems to support his dovish view. The crypto stock currently has a “40% SELL” average opinion, reinforcing that the technical momentum is not in its favor either. 

COIN Is Seeing a Revenue Slowdown

Coinbase saw a meaningful decline in trading activity last month. As of Oct. 25, its Q4 transaction volume stood at about $165 million. This puts the company on course for nearly $607 million, which would represent an 11% miss on the consensus estimate, Cyprys wrote.   

For 2027, he lowered his revenue forecast for COIN by an alarming 28%, while the Nasdaq-listed firm’s adjusted EBITDA is now expected to come in roughly 47% below the initial estimate.  

It's worth mentioning that insiders have predominantly unloaded the crypto stock in the trailing 12 months, the optics of which are clearly bearish for it heading into 2027. 

How Wall Street Recommends Playing COIN Shares

Other Wall Street analysts haven’t thrown in the towel on COIN stock, though. 

According to Barchart, the consensus rating on Coinbase remains at “Moderate Buy,” with the mean price target of about $200 indicating potential for a nearly 50% rally from current levels.

On the date of publication, Wajeeh Khan did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.