Mizuho Downgrades CRCL to Neutral, Cuts Price Target to $45
Mizuho has upgraded its rating of Circle Internet Group (NYSE:CRCL) to Neutral from Underperform. The firm also lowered its price target for CRCL to $45.00, which is below its current market value of $64.24.
The reduced price target and changed rating come as Mizuho has cut its forecast for average USDC in circulation to $110 billion from $127 billion by 2027. This implies a compound annual growth rate of 29%, below the company's long-term goal of 40%.
Mizuho cited three factors contributing to its bearish view on Circle Internet: unresolved issues affecting the likelihood of the CLARITY Act being enacted, lack of signs of Bitcoin recovery as an indicator for USDC market cap, and increased competition from Open USD that will continue weighing on distribution costs and market share.
Circle Internet Group's stock has declined by 65% over the past year despite a strong revenue growth of 51% in the last twelve months. The company recently acquired IBM's blockchain patent portfolio, which includes over 680 patent families and nearly 1,000 issued patents globally.