Truist downgrades Gemini, prefers other ‘high-quality assets’

As previously reported, Truist analyst Matthew Coad downgraded Gemini (GEMI) to Hold from Buy with a price target of $7, down from $13, after the company put out an 8K announcing preliminary Q4 results as well as the departure of the company’s CFO and COO. The results were “mixed,” notes the firm, which is worried about the level of cash burn and also believes that “during this crypto winter,” investors should prefer high-quality assets like Robinhood (HOOD) that generate positive free cash flow, have valuation support and a strong balance sheet. In addition to Robinhood, other higher quality assets that the firm would recommend instead include Adyen (ADYEY), Affirm (AFRM) and Toast (TOST), the analyst noted.