Needham & Company analysts have expressed caution about the overly optimistic projections surrounding Coinbase (NASDAQ:), suggesting that recent street forecasts for the company are “too bullish.”
Despite a strong Q1 performance, Needham sees a challenging backdrop for the remainder of the year, leading them to adjust their forecasts accordingly.
According to Needham, “Street forecasts became too bullish following a strong Q1, and now miss the weaker backdrop that includes material declines from Q1 highs for many crypto assets.”
The analysts highlight a decline in retail engagement, with most new entrants in the crypto space experiencing losses on their holdings, making them hesitant to invest further in the near term.
As a result, Needham is lowering their Q3 forecast and expects cuts to Q2 2024 consensus revenue and EPS expectations.
However, Needham remains optimistic about Coinbase’s longer-term prospects. They retain a Buy rating and…
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