Circle shares slide after Morgan Stanley slashes price target to $38

Circle Internet Group has received a downgrade from Morgan Stanley, which has lowered its rating to Underweight from Equal Weight and reduced its price target to $38 from $106 after cutting long-term expectations for USDC growth. Summary Morgan Stanley downgraded Circle to Underweight and cut its price target from $106 to $38. The brokerage lowered its USDC circulation forecasts for 2027 and 2028, citing slower stablecoin growth and pressure on reserve income. Circle shares fell about 6% in premarket trading after the downgrade, while TD Cowen initiated coverage with a Buy rating and an $82 price target. Morgan Stanley said real world stablecoin payments remain limited despite rising industry adoption. The downgrade comes days after Circle secured a New York trust charter and ahead of its second quarter earnings report. Morgan Stanley said the downgrade follows lower forecasts for USDC circulation and concerns that Circle’s earnings model could face pressure as reserve income becomes more sensitive to slower stablecoin growth and increasing competition from tokenized cash products. Circle shares fell about 6% in premarket trading on Monday to $58.81 after the research note was publ...