Mizuho downgrades Circle to underperform, cuts price target to $50 on Open USD threat
The Japanese investment bank said Open USD’s yield pass-through model could pressure Circle’s margins by shifting more reserve income to distributors.
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Summary
- Mizuho downgraded Circle to underperform from neutral and cut its price target to $50 from $85, citing mounting competitive pressure from OpenUSD.
- The bank said OpenUSD’s pass-through model could force Circle to share more reserve income with distribution partners, compressing margins.
- The Japanese firm cut its Circle 2027 adjusted EBITDA forecast to $699 million, about 25% below Wall Street consensus, and warned an upcoming Coinbase revenue-sharing renewal could add pressure.
