Circle Stock Faces Concerns as USDC Supply Stalls

Analysts are raising concerns about Circle stock as USDC supply stalls. Since going public on June 5, CRCL has surged 600%, with most analysts bullish, but Mizuho Securities holds a bearish outlook, giving it an “underperform” rating and $85 price target, citing medium-term earnings risks.

Circle, creator of USDC stablecoin, faces scrutiny over valuation and revenue projections. Mizuho analysts warn of competition and commoditization risks, deeming the $4.5 billion revenue target by 2027 too ambitious due to stagnant USDC supply and falling interest rates. Market cap is $61.67 billion, second-largest after Tether’s USDT.

Read more at Yahoo Finance: Analysts sounds alarm on Circle stock as supply stalls