Circle Shares Drop After Morgan Stanley Price Cut

Circle Internet Group is facing fresh pressure after Morgan Stanley downgraded the company from Equal Weight to Underweight. Analysts slashed their price target significantly, moving it from $106 down to $38 per share.

The downgrade stems from revised projections for USDC, the dollar pegged stablecoin issued by Circle. Morgan Stanley analysts pointed to weaker long term growth expectations for the asset as a primary reason for the shift in sentiment.

This move highlights how sensitive the broader crypto infrastructure market remains to stablecoin adoption trends. Investors are now watching to see how Circle responds to these cooling growth forecasts and whether the company can hit new milestones to regain analyst favor.

For now, the market is reacting with caution. Traders will be monitoring future reports to see if USDC usage picks up or if the competitive landscape continues to weigh on Circle's valuation.