Circle Stock Plunges After Morgan Stanley Downgrade

Circle Internet Group's stock plummeted by 6% in premarket trading on Monday after Morgan Stanley downgraded the stablecoin issuer.

Morgan Stanley cut its rating on Circle to Underweight from Equal Weight and slashed its price target to $38 from $106, while TD Cowen initiated coverage with a Buy rating and an $82 price target.

The brokerage reduced its forecasts for USDC circulation in 2027 and 2028 by 33% and 44%, respectively, citing slower growth than expected.

Morgan Stanley analysts noted that USDC has not grown significantly since the third quarter of last year, with broader adoption yet to materialize beyond remittances and stablecoin-linked card spending.