4 big analyst cuts: Coinbase carries 'too much uncertainty,' says Piper Sandler
Here is your Pro Recap of the biggest analyst cuts you may have missed today: downgrades at Coinbase Global, US Steel, Lumentum, and VICI Properties.
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Piper Sandler downgrades Coinbase on valuation
Coinbase Global (NASDAQ:COIN) shares were recently off more than 2% pre-market today after Piper Sandler downgraded the company to Neutral from Overweight and cut its price target to $60.00 from $65.00.
According to the firm, the recent case brought forth by the SEC, as well as the continued lack of regulatory clarity in the U.S., has created “too much uncertainty to prudently project revenues in future years” for it to keep the Overweight rating on the stock.
Shares have surged 126% YTD and 55% since June 6, when the SEC accused Coinbase of operating an unregistered securities exchange. According to Piper Sandler, the appreciation is likely driven by rising crypto prices and potential involvement in Bitcoin ETFs. “However, rising crypto prices have not translated to increased trading volumes for COIN in recent quarters and the timing of a spot bitcoin ETF approval is anyone’s guess,” said the firm, adding it expects Q2 trading volumes and monthly transacting user totals to be the lowest in over two years.
The analysts added that future regulatory clarity and improved fundamentals are needed for a more positive outlook.
US Steel downgraded ahead of Q2 earnings
United States Steel (NYSE:X) shares fell 2% pre-market today after Exane BNP Paribas downgraded the company to Neutral from Outperform with a price target of $26.00.
The company is set to report its Q2/23 earnings on July 27. Street estimates stand at $1.78 for EPS and $5.06 billion for revenues.
2 more downgrades
Barclays downgraded Lumentum (NASDAQ:LITE) to Underweight from Equalweight with a price target of $42.00 (from $40.00). Shares dropped almost 5% pre-market today.
VICI Properties (NYSE:VICI) shares fell around 1% pre-market today after Deutsche Bank downgraded the company to Hold from Buy and cut its price target to $34.00 from $39.00.
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