Circle Stock Slumps on Morgan Stanley Downgrade

Circle Internet Group shares declined sharply in premarket trading on Monday after Morgan Stanley downgraded the stablecoin issuer, while TD Cowen initiated coverage with a bullish rating.

The contrasting analyst calls sent Circle's stock tumbling 6% to $58.81 in premarket trading.

Morgan Stanley reduced its price target for Circle to $38 from $106 and cut its rating to Underweight from Equal Weight, citing slower growth expectations for USDC, Circle's dollar-pegged stablecoin.

The brokerage lowered its forecasts for USDC circulation in 2027 and 2028 by 33% and 44%, respectively, challenging Circle's target of achieving average annual growth of 40% across market cycles.