Morgan Stanley Downgrades Circle Internet Group (CRCL) to Underweight

Morgan Stanley analyst James Faucette downgraded Circle Internet Group (NYSE: CRCL) from Equalweight to Underweight with a price target of $38.00 (from $106.00).

The analyst comments "Downgrade to UW and cut PT to $38 as USDC contraction exposes reserve income sensitivity and points to a lower-margin shift toward transaction revenue. We cut USDC assumptions by ~33% in ’27 and ~44% in ’28, driving GAAP EPS ~3% and ~20% below consensus. Tokenized MMFs and deposits threaten both USDC balances and take rates, with USYC carrying structurally weaker economics. Agentic payments remain immaterial, with volume down to $41.9K per day and an implied average transaction size near ~$0.24. Open USD embeds shared governance and reserve economics, raising the cost of defending USDC distribution."

For an analyst ratings summary and ratings history on Circle Internet Group click here. For more ratings news on Circle Internet Group click here.

Shares of Circle Internet Group closed at $62.61 yesterday.

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