Morgan Stanley Slashes Circle Price Target Amid Growing Competition and USDC Concerns

Circle's stock price plummeted by over 7% after Morgan Stanley downgraded the company and slashed its price target from $106 to $38.

Morgan Stanley analyst James Faucette cited weaker USDC growth and increasing competition as reasons for the downgrade, warning that these factors could reduce Circle's future earnings.

The bank also expressed concerns about the growing popularity of Open USD (OUSD), a stablecoin launched by a consortium including Visa, Mastercard, BlackRock, and Coinbase, which could pose a challenge to USDC's market position.