Morgan Stanley cuts Circle price target as USDC growth stalls

Analyst James Faucette pointed to a significant deceleration in USDC expansion, noting that circulation has effectively plateaued since the third quarter of last year. Morgan Stanley reduced its 2027 and 2028 circulation forecasts by 33% and 44%, respectively, while warning that tokenized money market funds and emerging payment products are increasingly competing for the same capital. The report further highlighted that despite industry-wide hype, real-world stablecoin payments remain limited, with the vast majority of volume still tied to crypto trading rather than commercial activity.

Contrasting this bearish stance, TD Cowen initiated coverage with a Buy rating and an $82 price target, betting that Circle will evolve into a broader financial infrastructure platform. While Circle recently secured a New York trust charter to bolster its regulatory standing, Wall Street remains deeply divided. LSEG data indicates that 16 of the 30 analysts currently covering the stock maintain Hold or Sell ratings, reflecting ongoing uncertainty ahead of the company's second-quarter earnings report on August 5.