Circle Internet Group (CRCL) shares fell over 6% in premarket trading.
Morgan Stanley downgraded the stock to Underweight from Equalweight. Analysts slashed the price target to $38 from $106. The firm noted that USDC stablecoin circulation has not grown since the third quarter of last year. Morgan Stanley also cited mounting pressure on the company's reserve income model.
Conversely, TD Cowen initiated coverage on Circle with a Buy rating. The firm set an $82 price target. Analysts believe Circle can evolve into a financial infrastructure platform beyond its stablecoin business. This expansion includes opportunities in payments, treasury services, and tokenization. These conflicting reports highlight a sharp division on Wall Street regarding Circle's growth prospects.