Bank of America downgraded Coinbase to neutral amid the effects of FTX’s collapse.
The bank lowered its COIN price target from $77 to $50.
Bank of America Cited FTX Collapse
Bank of America announced today that due to the collapse of FTX, Coinbase is facing a series of new headwinds and therefore downgraded the rating to neutral.
Additionally, the bank lowered its price target from $77 to $50. Although the company’s share rose to $ 49, it has fallen by 30% in the last month.
While BofA is confident that Coinbase isn’t just another FTX, it’s not something that can protect the company from the crypto market woes.
Analysts used the following statements:
“The analyst team sees three potential headwinds. Declining business activity as confidence in crypto is eroded, regulatory clarity is delayed, and the impact causes greater fallout for the industry.”
The bank stated that the FTX debacle could increase Coinbase’s market share in the long run.
The bank had valued the COIN at $350 during the bull season.
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