Coinbase initiated with an Underweight at Wells Fargo

Wells Fargo analyst Jeff Cantwell initiated coverage of Coinbase with an Underweight rating and $57 price target. The analyst says a “challenged environment” will keep the company’s operating results under pressure. Coinbase faces “several headwinds,” as its retail pricing is likely to decline over time given industry dynamics and rising competition from others including Bianance and FTX, Cantwell tells investors in a research note. Post the “crypto winter,” the analyst expects the regulatory and government stances on crypto to become more restrictive to protect customers, creating headwinds to the company’s revenue and volume. Cantwell does not see Coinbase being profitable in the coming environment.