Mizuho gives Circle stock a 'underperforming' rating and questions USDC's medium-term growth expectations

According to a report by Golden Finance, Japan's Mizuho Securities has covered Circle (CRCL) stocks for the first time and given a "underperforming" rating, with a target price of $85, which has significant downside potential compared to the current stock price of around $205. Mizuho analysts believe that the market has overestimated the medium-term growth potential of USDC, with main risks including interest rate cuts, stagnant USDC liquidity, and high distribution costs. Circle's USDC market value is approximately $62 billion, ranking second in the world after Tether. Mizuho pointed out that Circle's projected revenue target of $4.5 billion in 2027 may be overestimated by 25% -30%. Despite Circle's application for a banking license and strengthened compliance transparency, new regulations such as the GENIUS Act may intensify competition. Bernstein is optimistic, setting the target price at $230, and optimistic about its potential as the "Internet dollar network" in the next decade.