[Mizuho Downgrades Circle to 'Underperform,' Lowers Price Target to $50] BlockBeats News, July 19, according to Bloomberg, Circle's stock price has dropped more than 75% from its post-IPO high last year. Mizuho Securities USA analyst Dan Dolev downgraded Circle's rating from 'Neutral' to 'Underperform' this week and set a Wall Street-low price target of $50, representing approximately 18% downside from Thursday's closing price. This is significantly below the Bloomberg consensus analyst price target of $123. Dolev believes Circle is facing increasing risks from intensified competition in the stablecoin market. Over 100 fintech companies, payment networks, crypto firms, and banks—including Visa, Stripe, Coinbase, and BlackRock—are supporting the Open Standard project, which plans to issue OUSD. Circle's stock fell 7.7% on Thursday, the same day Visa announced a stablecoin issuance, transfer, and management platform for financial institutions. Circle primarily generates revenue from the yield on USDC reserve assets. However, new stablecoin initiatives like OUSD plan to share reserve yields with partners and charge lower management fees. Dolev believes this business model could attract partners away from Circle and increase pricing and margin pressures. Dolev estimates Circle's adjusted EBITDA for 2027 at $699 million, below the market consensus of $907 million. He also noted that Circle's USDC distribution agreement with Coinbase is up for renegotiation in August, and Coinbase may leverage the competitive pressure from OUSD to secure a higher revenue share. [Original Link]