Circle stock falls 1% as analyst warns of rising competition and potential interest rate cuts

Circle (CRCL) stock fell 1% as Mizuho analysts rated it Underperform due to rising competition and potential interest rate cuts. Despite a 500% surge post-IPO, shares traded at $204 midday. Mizuho set a price target of $85, citing risks from interest rate cuts and competition. Wall Street remains divided on the stock.

Mizuho analysts warn interest rate cuts could impact Circle’s revenue from short term treasury bills. The GENIUS Act may bring new competition, shrinking Circle’s market share. Analysts like Jeff Cantwell see Circle as a leading crypto disruptor with a bright future. Compass Point’s Ed Engel predicts competition may reduce market share expectations and pressure CRCL shares.

In a detailed analysis, Jeff Cantwell predicts the stablecoin market cap could reach $500B by next year and ultimately $2T. Meanwhile, Compass Point analyst Ed Engel rates the stock Neutral with a $205 price target, anticipating increased competition post-legislation. Stay updated on financial news with Yahoo Finance for more insights and analysis.

Read more at Yahoo Finance: Circle stock slides as analyst says Wall Street ‘overstates’ stablecoin growth prospects