Mizuho Securities has lowered its price target for Circle (CRCL) to $70, citing key risks to mid-term profitability.
BlockBeats News, November 15th, according to The Block, Mizuho Securities on Friday expressed a more pessimistic view on Circle Internet Group's stock. The investment bank's analyst lowered its base target price from $84 to $70. Circle's stock traded at around $82 on Friday, down nearly 40% in the past month.
"We believe CRCL's valuation has not fully reflected the key risks facing its mid-term profitability," a Mizuho analyst stated in a research report. The analyst also noted that potential risks include "upcoming rate cuts, relatively stagnant USDC circulation, structurally high (and still growing) distribution costs," and the increasingly fierce competition in the stablecoin sector.
Mizuho's forecast stands in stark contrast to JPMorgan analysts, who this week upgraded Circle's stock to "hold" and provided a new target price: by December 2026, Circle's stock price will reach $100.
Mizuho also stated, "Given the interest rate declines, slower-than-expected adoption of its USDC stablecoin, and rising token distribution costs, CRCL's consensus earnings forecasts may face downward revisions in the coming years."
Mizuho's optimistic scenario target price for Circle's stock is $251, while the pessimistic scenario target price is $38.
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