Coinbase stock price target raised at Mizuho, but analyst still ‘skeptical’ about prospects

Coinbase stock price target raised at Mizuho, but analyst still ‘skeptical’ about prospects

Shares of Coinbase Global Inc.

COIN,

-1.15%

fell 1.2% in premarket trading Tuesday, to extend its recent weakness, as Mizuho analyst Dan Dolev raised his price target but said he remained "skeptical" about the cryptocurrency trading platform's medium-term prospects given heavy reliance on retail commissions. Dolev raised his price target to $315 from $285, but kept his rating at neutral. "Over time, COIN's fees may face downward pressure from competing platforms following the footsteps of zero-commission stock trading," Dolev wrote in a note to clients. "This is because platforms like PayPal and Cash App primarily use crypto trading as engagement tools." Dolev noted that retail trading commissions represent 80% of sales. The stock, which went public on April 14 through a direct listing, has declined on 10 of the 13 trading sessions since then through Monday, to close Monday 10.3% below the April 14 closing price of $328.28. Over the same time, bitcoin

BTCUSD,

-1.67%