Circle Stock Slumps on Morgan Stanley Downgrade, Contrasting Analyst Views

Circle Internet Group's shares fell 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 led to a 6% decline in Circle stock to $58.81.

Morgan Stanley cut its rating on Circle to Underweight from Equal Weight and slashed its price target to $38 from $106, while TD Cowen began 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 slow growth since the third quarter of last year.