Morgan Stanley Downgrades Circle to Underweight with Sharp Price Target Reduction
On August 3, Morgan Stanley downgraded stablecoin issuer Circle (CRCL) from Equal-Weight to Underweight and slashed its price target by nearly 64% to $38 from $106. The downgrade followed concerns over slowing USDC adoption, weaker reserve income prospects, and a higher valuation for the company ahead of its August 5 earnings report. This move adds to growing skepticism on Wall Street about Circle's growth trajectory. Earlier in July, Bernstein also cut its price target by 25%, citing reduced expectations for USDC supply expansion from $73 billion at quarter-end to just $170 billion by 2028 instead of the previously forecasted $290 billion. Despite regulatory progress—such as Circle obtaining a limited-purpose trust charter in New York—the stock continued its downward trend, falling nearly 6.1% on August 3 amid investor concerns over earnings expectations.
Topics: analyst downgrade Circle (CRCL) Morgan Stanley price target cut