Compass Point analyst Ed Engel downgraded Circle Internet Group (NYSE: CRCL) from Neutral to Sell with a price target of $77.00 (from $79.00).

The analyst commented, "USDC is more resilient this cycle; however, we believe supply is shifting into lower margin areas. We downgrade CRCL to Sell (PT -$2 to $77) alongside our expectation that gross margins are contracting in 1H26. We believe CRCL's outperformance since 4Q results was driven by USDC's resilience and growing expectations for margin expansion. CRCL trades at 40x optimistic 2027E EBITDA forecasts that assume USDC reaccelerating by 2Q26. As USDC supply remains stagnant and CRCL's 1H26 margins decline, we expect Consensus to reduce 2026-27E expectations, where our 2027E EBITDA is 20% below the Street."

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Shares of Circle Internet Group closed at $94.12 yesterday.