Morgan Stanley is downgrading Coinbase stock and cutting its price target by more than half

Morgan Stanley has downgraded Coinbase stock from "equal weight" to "underweight" and significantly reduced its price target to $120 from $258. Analyst Michael Cyprys cited a deterioration in confidence for an earnings recovery, pointing to sluggish crypto trading, a weaker revenue forecast, and unsettled crypto markets following a recent hack at Binance. This downgrade contradicts the general sentiment on Wall Street, where a majority of analysts recommend buying or holding Coinbase stock, which is down over 39% this year.