Circle Analysts Split as Price Targets Clash
Wall Street analysts at Morgan Stanley and TD Cowen offered vastly different views on Circle Internet Group, highlighting the challenges and opportunities facing the stablecoin issuer.
Morgan Stanley downgraded Circle from Equal Weight to Underweight, cutting its price target to $38 from $106. The firm cited slowing USDC growth, intensifying competition, and delays in developing transaction-based revenue as reasons for the downgrade.
TD Cowen, on the other hand, initiated coverage with a Buy rating and an $82 target, arguing that investors are focusing too heavily on reserve income while overlooking Circle's development into a broader digital financial infrastructure company.
The firm expects USDC circulation to grow at a compound annual rate of roughly 31% through 2030, supported by greater regulatory clarity and institutional adoption. TD Cowen also sees significant potential for fee-based revenue from Circle's Payments Network, Cross Chain Transfer Protocol, StableFX, and Arc.