TD Cowen analysts remain cautious on Coinbase (NASDAQ:COIN) shares, maintaining an Underperform rating and $36 price target in a note Wednesday.
They told investors that there is a widening disconnect between sentiment and the company's fundamentals.
Coinbase will report second quarter earnings on August 3, and TD Cowen sees upside to Q2 consensus EBITDA on pricing power.
However, the analysts said that "while the prospect of spot BTC ETFs & Ripple ruling have fueled positive sentiment (+81% since 6/14 vs. +4% IXIC) – a premium multiple is not currently warranted for this business."
"Fundamental deterioration continues on both trading volumes and USDC supply. Risks on regulatory + Binance are underappreciated," they concluded in their note.