Morgan Stanley Cuts Circle Price Target as Stablecoin Growth Raises Concerns

Morgan Stanley has cut its price target for Circle (CRCL) to $38, citing concerns over the sustainability of stablecoin growth and increasing regulatory scrutiny.

The bank's analysts pointed to a potential slowdown in stablecoin adoption and heightened competition in the payments space as key factors.

They also noted that regulatory developments could impact Circle's revenue streams, particularly around the issuance of USDC.