Coinbase Downgraded to Neutral: Time to Take Profits?

• DA Davidson downgraded Coinbase (COIN) from buy to neutral as the stock has more than doubled this year.
• Regulatory concerns and a weak Q4 earnings report are adding to the near-term uncertainty for Coinbase.
• Despite the downgrade, D.A. Davidson remains bullish on Coinbase over the long term, raising their price target to $60 from $55.

Coinbase Downgraded Ahead of Earnings

D.A. Davidson analyst Chris Brendler has downgraded Coinbase (COIN) to Neutral from Buy after its big run higher early this year sent the shares surging past his $55 price target.

Rising Cryptocurrency Prices

Coinbase shares are up 108% to above $69 this year alongside a broader rally in cryptocurrencies that earlier Thursday pushed bitcoin (BTC) past $25,000 for the first time since August.

Growing Regulatory Concerns

With Coinbase’s upcoming Q4 earnings and growing regulatory concerns, Brendler suggests now is a good time to take some money off the table, even as he remains bullish on the stock over the longer term.

Q4 Earnings Worry

In addition to recent regulatory concerns, there is also worry about Coinbase’s earnings report due Feb. 21, which is expected to show weakness in assets under management and interest income.

Price Target Adjusted

< p >Alongside the downgrade, Brendler boosted his price target on COIN to $60 from $55.< / p >