Morgan Stanley raises Coinbase and Robinhood price targets
Morgan Stanley lifted its Coinbase target to $258.
The short version
- Robinhood rose to $160 after a target hike.
- Gemini shares fell on a Morgan Stanley downgrade.
- Higher interest rates could support broker earnings now.
Wall Street is shifting its bets on digital finance companies as trading activity picks up. According to Stocktwits, Morgan Stanley raised its price target on Coinbase, the cryptocurrency exchange platform, to $258 from $250, while keeping its equal weight rating. At the same time, the firm lifted its price target on Robinhood, the commission-free stock and crypto trading app, to $160 from $150.
Morgan Stanley analyst Michael Cyprys said concerns about broker cash balances and artificial intelligence could be overdone, pointing out that higher interest rates could support broker earnings. Meanwhile, Barclays, the British multinational universal bank, raised its price target on Strategy, the Bitcoin-focused software company, to $175 from $160.
Barclays analyst Nik Cremo cited resilient consumer demand and strong sector fundamentals for the move. But not every firm shared the optimism. Morgan Stanley cut its rating on Gemini, the cryptocurrency exchange founded by the Winklevoss twins, to underweight from equal weight, lowering its price target to $4.75 from $5.50.
The bank said a more favorable crypto market might not be enough to resolve Gemini's challenges with scale and distribution. Bitcoin, the world's largest digital currency, recovered to around $82,500 on Friday morning after dipping below $81,000 in the previous session. For your portfolio, these shifting Wall Street targets show how quickly analysts are adjusting their outlooks as crypto markets bounce back. Keep an eye on how these platform valuations move before the next round of earnings reports.
Photo: Ajay Suresh, CC BY 4.0, via Wikimedia Commons
