Coinbase's (NASDAQ:COIN) price target was cut to $27 from $30 per share by Mizuho on Wednesday, with analysts maintaining an Underperform rating on the stock.
Analysts told investors in a note that while the "Street appears to be on the mark for 1Q," the firm's detailed revenue build "points to at least 20% downside to consensus in both 2Q and FY23."
Coinbase shares are down 2% at the time of writing on Wednesday.
Analysts said muted trading volumes and a sharp decline in USDC market cap will likely weigh on transaction revenue and interest income.
"Despite COIN's recent efforts to boost sentiment (e.g. recent launch of an international exchange for non-US users), fundamentals remain weak. Average daily trading volumes are $1.16bn in 2Q-to-date, -27% below both March and overall 1Q levels," said analysts.
"We estimate COIN generated $144bn of volume on the platform in 1Q, or an average $1.6bn per day. This declined to just $1.16bn in April," the analysts added. "Holding 4Q's blended take rate of 22bps constant implies ~$235mn of total transaction revenue in 2Q."