Shares of Coinbase Global Inc. slumped 4.2% toward a two-month low in afternoon trading Friday, after both an equity analyst and credit analyst trimmed their outlooks on the cryptocurrency wallet provider, with both analysts citing downbeat outlooks for the cryptocurrency market. J.P. Morgan analyst Kenneth Worthington reiterated his neutral rating on the stock but cut his price target by 23% to $60, which is less than 1% below current levels. “Cryptocurrency trading activity remains under pressure in 3Q22, deteriorating in September,” Worthington wrote in a note to clients. He also said Coinbase has lost market share, like it has during previous downcycles. Meanwhile, credit rating agency Moody’s confirmed Coinbase’s Ba3 trading, which is three notches deep into speculative grade, or “junk,” territory, but changed the outlook on the rating to negative from under review. “The outlook is negative because of the challenging crypto asset operating environment which continues to be a drag on Coinbase’s free cash flow generation capacity,” said Moody’s senior analyst Fadi Abdel Massih. Coinbase’s stock has tumbled 76.1% year to date, while bitcoin has dropped 59.7% and the S&P 500 has declined 23.3%.
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