Oppenheimer Downgrades Coinbase After Wells Notice

Oppenheimer Downgrades Coinbase After SEC Sent Wells Notice

It’s time to move to the sidelines on Coinbase Global: Oppenheimer.

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The downgrade comes after U.S. Securities and Exchange Commission slapped Coinbase with a Wells notice, saying it’s identified possible violations of U.S. securities law.

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Analyst Owen Lau downgraded the cryptocurrency exchange platform to perform from outperform and removed his $70 price target.

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It also comes after the White House “strongly criticized” the digital asset sector this month.

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“While we downgrade Coinbase shares, we believe both upside opportunities and downside risk have increased substantially, and we may find an attractive risk/reward entry point in the future.”

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Coinbase shares surged nearly 118% in 2023, far outstripping the 3% gain in the S & P 500 over the same time period.

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The stock dropped 11% in Thursday premarket trading.

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