Morgan Stanley Downgrades Circle to Underweight, Slashes Price Target to $38 Amid USDC Growth Concerns
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Morgan Stanley downgraded Circle to Underweight and cut its price target to $38, citing slower-than-expected USDC circulation growth and rising competition from tokenized cash products that could compress reserve-income economics. The note also highlights limited traction in real-world payment volumes and potential higher distribution costs from OpenUSD mechanics. A same-day bullish initiation from TD Cowen underscores a divided Street, but the downgrade pressures sentiment.
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AI تجزیاتی سمجھ · NCSKCRCL2USD/USDTAI تجزیاتی سمجھ
▼ Bearish
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⚠️ AI سے تیار کردہ تجزیاتی سمجھ خبروں کے مواد پر مبنی ہے اور صرف معلوماتی مقاصد کے لیے فراہم کی گئی ہے۔ یہ سرمایہ کاری کا مشورہ نہیں ہے اور نہ ہی BingX کے خیالات کی نمائندگی کرتی ہے۔ سرمایہ کاری میں رسک شامل ہے۔ براہ کرم ذمہ داری سے ٹریڈ کریں۔
On Monday, Morgan Stanley downgraded Circle Internet Group from Equal Weight to Underweight, aggressively cutting its price target from $106 to $38. According to analyst James Faucette, USDC circulation has expanded more slowly than anticipated, leading the bank to slash circulation assumptions for 2027 and 2028 by 33% and 44%, respectively. The report highlights growing competition from tokenized money market funds and deposits, which threaten Circle’s reserve-yield income. Conversely, TD Cowen initiated coverage the same day with a Buy rating and an $82 target, emphasizing Circle's expansion into broader financial infrastructure. Despite recent regulatory milestones, including a New York Department of Financial Services trust charter and a July OCC authorization, market sentiment remains divided. LSEG data indicates that 16 of 30 analysts currently maintain a Hold or Sell rating on the stablecoin issuer as of the latest reporting.
