Circle Internet slides after Morgan Stanley downgrade, cut in price target
The bank said tokenized money market funds, Open USD and slower USDC growth could weigh on the stablecoin issuer’s earnings.
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Summary
- Morgan Stanley downgraded Circle Internet to underweight and lowered its price target to $38 from $106.
- The bank cut forecasts for supply of the company’s USDC stablecoin through 2028, citing weaker reserve income and lower-margin revenue.
- Analysts said growing competition from tokenized cash products and new stablecoin models could pressure Circle’s earnings.
