Mizuho Securities Negative on Coinbase Global Inc. (COIN) Crypto Futures: 'cannibalization risk'

August 16, 2023 9:55 AM EDT
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Price: $141.09 --0%

Rating Summary:
    12 Buy, 12 Hold, 9 Sell

Rating Trend: = Flat

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    Up: 5 | Down: 15 | New: 43
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Mizuho Securities analyst Dan Dolev reiterated an Underperform rating and $27.00 price target on Coinbase Global Inc. (NASDAQ: COIN).

The analyst comments "Bloomberg reported that COIN obtained approval from the National Futures Association (NFA) to sell crypto derivatives directly to retail traders in the US. Since the global crypto derivatives market can be 3-4x larger than spot, this approval increases COIN's TAM. However, we have the following concerns: (1) There may be cannibalization risk, as COIN already has a derivatives exchange. (2) Trading value will likely decline given the leverage associated with getting exposure to crypto via derivatives. (3) Futures pricing may drive take rate compression given lower fees for future trading vs. spot."

For an analyst ratings summary and ratings history on Coinbase Global Inc. click here. For more ratings news on Coinbase Global Inc. click here.

Shares of Coinbase Global Inc. closed at $79.18 yesterday.

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