Morgan Stanley downgraded Circle's rating from 'Equal-weight' to 'Underweight' and significantly lowered the target price from $106 to $38. Following the release of the related report, Circle's stock price dropped by approximately 6%. The firm believes that the slowing growth of USDC will weaken reserve earnings and push Circle toward lower-margin transaction revenue. As a result, it has reduced its USDC supply forecasts for 2027 and 2028 by approximately 33% and 44%, respectively, with corresponding GAAP EPS estimates falling about 3% and 20% below market consensus. Morgan Stanley also pointed out that tokenized money market funds, tokenized deposits, and Open USD will intensify competition, while Circle's AI Agent payment business has a daily transaction volume of only around $41,900, indicating limited commercial applications. (CoinDesk) https://(wublock123.com)/news/morgan-stanley-cuts-circle-rating-target-38-usd-65821