Compass Point analysts have reiterated a bearish outlook on Coinbase, maintaining a Sell rating and a $140 price target. They warn that increasing competition in the derivatives space will limit revenue growth.
Despite Coinbase receiving regulatory approval to offer offshore perpetual futures through its Deribit subsidiary, analysts flag cannibalization risks. First-quarter perps revenue reached $50 million, but retail trading fell to its lowest since Q3 2024.
Competitors like Kalshi and Binance, along with traditional brokerages including Interactive Brokers, are expanding into perps. The analysts also note that the Trump family's connection with Binance could increase U.S. market access risks for Coinbase.
Shares traded 2.6% lower at $184 midday.