Circle shares slide more than 5% after Morgan Stanley downgrade and $38 price target
AI Market Summary
Circle shares slid after Morgan Stanley downgraded the stock and cut its target sharply, citing USDC balance contraction, reserve-income sensitivity, and a potential margin shift toward transaction revenue. Competitive risk from a consortium-backed Open USD stablecoin adds to concerns about USDC supply and take rates. Separately, low perceived odds of the Clarity Act passing this year keeps the regulatory backdrop uncertain, reinforcing cautious positioning.
Impact level
● Medium
Affected assets
NCSKCRCL2USD/USDT-1.60%
AI Insight · NCSKCRCL2USD/USDTAI Insight
▼ Bearish
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Circle (CRCL) shares fell more than 5% in premarket trading on Monday after Morgan Stanley downgraded the stock and slashed its price target to $38 from $106. TD Cowen initiated coverage with a “buy” rating and an $82 target, but it did little to offset the negative tone. The stock ended Friday down 2.54% at $62.61 and is down 9% over the past month as investors also weigh the escalating U.S.-Iran situation and regulatory uncertainty, including Polymarket odds below 30% for the Clarity Act to pass this year.
