4 big analyst cuts: Coinbase and Redfin trimmed after monster rallies
Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Coinbase Global, Redfin, Alcoa, and JPMorgan.
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Atlantic Equities downgraded Coinbase Global (NASDAQ:COIN) to Neutral from Overweight with a price target of $80.00 (from $70.00) following the recent rally in the stock, which has seen a 60% increase from its recent lows. Shares surged more than 9% yesterday, driven by the enthusiasm surrounding the company’s involvement in the potential launch of a Bitcoin ETF.
According to Atlantic Equities, the current risk/reward for the company appears less attractive now due to ongoing regulatory challenges and surprisingly weak trading volumes.
DA Davidson downgraded Redfin (NASDAQ:RDFN) to Underperform from Neutral with a price target of $10.00, as reported in real time on InvestingPro.
RDFN has experienced remarkable growth in 2023, with shares up 266% YTD, and already up 28% in just this week.
According to DA Davidson, the company has been making significant progress in recent quarters, focusing on cost reductions in its core brokerage operations and shifting towards higher-margin revenue streams. While this progress towards sustainable profitability is noteworthy, the firm believes that the current valuation of Redfin already fully incorporates these.
Shares fell more than 4% premarket today following the downgrade.
Citi downgraded JPMorgan (NYSE:JPM) to Neutral from Buy with a price target of $160.00. The analysts cited what they assess as a «premium valuation» of about 2x tangible book value and 10.5x earnings per share for next year, which was prompted by the shift «towards higher-quality
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