Coinbase Global cut at JPMorgan amid Bitcoin ETF skepticism: 4 big analyst cuts

Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed today: downgrades at Coinbase, Cheesecake Factory, Philip Morris, and Sirius XM Holding.

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Coinbase slashed at JPMorgan

JPMorgan downgraded Coinbase Global (NASDAQ:COIN) to Underweight from Neutral with a price target of $80.00, as reported in real-time on InvestingPro.

The bank acknowledges Coinbase's status as a leading U.S. cryptocurrency exchange and a global player in crypto trading and investing. However, the analysts expressed skepticism about the market's expectations from Bitcoin ETFs, which have been perceived as a catalyst to revive the crypto sector.

With cryptocurrency prices, including Bitcoin, already facing downward pressure, the analysts anticipate a potential decrease in enthusiasm for cryptocurrency ETFs. This could lead to lower token prices, reduced trading volumes, and diminished revenue opportunities for companies like Coinbase.

Despite Coinbase's exceptional performance in 2023 (with a 390% increase compared to the S&P 500's 26% gain), the analysts foresee 2024 as a more challenging year for the company's stock. This outlook is despite Coinbase's ongoing progress in various initiatives, such as the development of derivatives and its Layer-2 Base.

Coinbase shares fell more than 4% pre-market today as Bitcoin price slipped.

The Cheesecake Factory downgraded at JPMorgan

The Cheesecake Factory (NASDAQ:CAKE) shares dropped more than 4% pre-market today after JPMorgan downgraded the company to Underweight from Neutral and cut its price target to $33.00 from $34.00.

The analysts pointed out that while scale is a common goal in the restaurant industry, it manifests differently across companies. They noted that Cheesecake Factory’s portfolio of 16 different brands, which spans 321 company-operated restaurants, does not benefit from the same type of "shared service" scale advantages that competitors like Darden Restaurants (NYSE:DRI) enjoy.

Many restaurant companies have gone through various stages of “portfolio management” (meaning, focus on/grow the few biggest winners and close/sell the others) and store level and organizational streamlining/simplification but not CAKE.

Two more downgrades

UBS downgraded Philip Morris International (NYSE:PM) to Sell from Buy with a price target of $86.50 (from $105.00). As a result, shares fell more than 1% pre-market today.

Sirius XM Holding (NASDAQ:SIRI) shares fell more than 1% pre-market today after Wells Fargo downgraded the company to Underweight from Equal Weight and cut its price target to $4.50 from $5.00.

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