The stock of Circle Internet Group (NYSE: $CRCL) has been downgraded and received a Street low price target as competition in the stablecoin sector intensifies.
Mizuho Securities (NYSE: $MFG) has cut its rating on CRCL stock to a sell-equivalent “underperform” from a hold -equivalent “neutral” previously.
Analyst Dan Dolev also placed a price target of $50 U.S. on Circle’s stock, the lowest level on Wall Street and implying 18% downside from current levels.
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The downgrade comes with Circle Internet Group’s stock having lost more than three quarters (75%) of its value since its 2025 initial public offering (IPO).
While Circle is one of the largest stablecoin issuers in the world, Dolev sees it at risk from increasing competition.
The Mizuho analyst notes that more than 100 financial-technology companies, payment networks, cryptocurrency firms, and banks are backing stablecoins other than Circle’s.
Notably, Visa (NYSE: $V), Coinbase Global (NASDAQ: $COIN), and BlackRock (NYSE: $BLK) are backing the venture “Open Standard,” which will issue the Open USD (CRYPTO: $OUSD) stablecoin.
CRCL stock fell 8% on July 16 after Visa unveiled a platform that lets financial firms issue, move and manage stablecoins.
To be sure, Circle is taking steps to guard against the encroachment of new competitors, such as gaining approval to become a limited-purpose bank.
But Dolev questions whether Circle’s actions will be enough in the long run. “I think they’re in trouble,” writes the analysts in a note to clients.
CRCL stock has declined 28% this year to trade at $60.08 U.S. per share.