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Raymond James gives Coinbase its first sell rating on Wall Street, citing competition concern

Monitors display Coinbase signage during the company's initial public offering (IPO) at the Nasdaq MarketSite in New York, on Wednesday, April 14, 2021.
Michael Nagle | Bloomberg | Getty Images

Coinbase may be one of the leading trading platforms in a new asset class, but it will face the same struggles as traditional brokerage firms, according to Raymond James.

Analyst Patrick O'Shaughnessy initiated coverage of the crypto exchange with an underperform rating, making him the only major analyst with a sell-equivalent rating on the stock, according to FactSet.

O'Shaugnessy said in a note to clients on Wednesday that strong competition for Coinbase is inevitable and will hold down the stock.

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