Morgan Stanley Cuts Circle Price Target 64% to $38, Downgrades to Underweight

Morgan Stanley slashes Circle’s price target from $106 to $38 and downgrades to Underweight, citing weaker reserve income, rising low-margin revenue, and intensifying competition from tokenized cash products.

Woofun AI reports that Morgan Stanley has downgraded stablecoin issuer Circle Internet to Underweight, reducing its price target from $106 to $38. The bank simultaneously lowered its supply forecast for Circle’s USDC stablecoin through 2028, attributing the adjustment to weaker reserve income and a growing share of low-margin revenue. Analysts indicated that intensifying competition from tokenized cash products and emerging stablecoin models could exert further pressure on Circle Internet’s profitability.