Coinbase Stock Has Tumbled. The Selloff Looks 'Overdone.' — Barrons.com

Emily DattiloCoinbase Global stock has tumbled in recent weeks, and Mizuho Securities slashed its price target on the cryptocurrency exchange but still sees some upside.Since Feb. 20, Bitcoin has fallen from about $98,000 to $79,000, and shares of Coinbase have dropped about 30% compared with a 9% decline in the S&P 500, analysts led by Dan Dolev noted in a report Tuesday."While some multiple compression is warranted due to lower multiples across tech, we believe the move in COIN shares is overdone," they added.There has been an average of $5 billion of daily spot trading on the cryptocurrency exchange platform since Feb. 20, up from a $4.6 billion average in the 30 days prior, and Mizuho's quarterly estimates for revenue have edged higher.The team slashed the price target on Coinbase stock to $217 from $280, citing lower market multiples. The stock gained 4.2% to $186.80 in trading Tuesday. Mizuho's new lower target is still about 16% higher than that trading price."While we see some upside from here as high volatility in the market should help sustain strong volume trends, we remain Neutral given the longer-term risk of pricing pressure from increased competition across the crypto-trading space," the analysts wrote.Write to Emily Dattilo at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.