Morgan Stanley Slashes Circle Price Target to $38 on Slower USDC Growth

Morgan Stanley downgraded Circle to underweight from equal-weight and cut its price target to $38 from $106, citing a weaker long-term earnings outlook. The bank expects slower USDC growth, greater pressure on reserve income and a shift toward lower-margin transaction revenue, while competition from tokenized money market funds, tokenized deposits and Open USD could further weigh on Circle’s economics. Circle shares fell about 6% following the downgrade.

Morgan Stanley Slashes Circle Price Target to $38 on Slower USDC Growth

Morgan Stanley downgraded Circle to underweight from equal-weight and cut its price target to $38 from $106, citing a weaker long-term earnings outlook. The bank expects slower USDC growth, greater pressure on reserve income and a shift toward lower-margin transaction revenue, while competition from tokenized money market funds, tokenized deposits and Open USD could further weigh on Circle’s economics. Circle shares fell about 6% following the downgrade.

Source:https://twitter.com/wublockchain/status/2084339212044874033